Technical Indicators for Rational Investing in the Technology Companies: The Evidence of FAANG Stocks

Luís António Gomes Almeida

Abstract


ABSTRACT

This paper aims to contribute to technical-scientific knowledge about the tools needed to support the decision making in investments in the capital market. We focus our analysis on the following technology companies’ performance: Facebook, Apple, Amazon, Netflix and Google (FAANG). The simulation covers 18,389 observations, applying strategies based on the Ichimoku dynamics, technical analysis indicators, MACD and RSI, and the purchase and maintenance strategy (B&H), that gives evidence that the dynamics of the past is the best predictor for the future. We also found theoretical and empirical evidence of the predictive capacity of these investment strategies, and their performance was evaluated by the return provided, through different negotiation methodologies tested. The Ichimoku system trading dynamics offers the best profitability and the lowest concerning the risk, in the short and medium term, evaluated by the return and number of trades with positive returns.

Keywords: Ichimoku; Buy and Hold; MACD; Chikou Span; RSI

ABSTRAK

Kajian ini bertujuan untuk menyumbang dalam aspek pengetahuan teknikal-saintifik berkaitan pembuatan keputusan dalam pelaburan di pasaran modal. Analisis kajian memfokuskan kepada prestasi syarikat teknologi Facebook, Apple, Amazon, Netflix dan Google (FAANG). Simulasi dilakukan terhadap 18,389 pemerhatian yang menerapkan strategi berdasarkan dinamika Ichimoku, petunjuk analisis teknikal, MACD dan RSI, serta strategi pembelian dan penyelenggaraan (B&H) memungkinkan pencarian bukti bahawa perubahan masa lalu adalah peramal terbaik dari masa depan. Kami menemui bukti teori dan empirikal mengenai kemampuan ramalan strategi-strategi pelaburan ini yang mana prestasi mereka dinilai berdasarkan pulangan yang diberikan. Penemuan kajian menunjukkan bahawa sistem perdagangan dinamik Ichimoku dapat memberikan keuntungan terbaik serta tahap risiko terendah bagi jangka masa pendek dan sederhana yang dinilai berdasarkan pulangan dan jumlah perdagangan yang memberikan pulangan positif.

Kata kunci: Ichimoku, Buy and Hold; MACD; Chikou Span; RSI


Keywords


Ichimoku, Buy and Hold, MACD, Chikou Span, RSI

Full Text:

PDF

Refbacks

  • There are currently no refbacks.


DISCLAIMER

The editors and publisher of Jurnal Pengurusan have made every possible effort to verify the accuracy of all information contained in this publication. Any opinions, discussions, views and recommendations expressed in the article are solely those of the authors and are not of Jurnal Pengurusan, its editors or its publisher. Jurnal Pengurusan, its editors and its publisher will not be liable for any direct, indirect, consequential, special, exemplary, or other damages arising therefrom.