Study of the effectiveness of technical analysis in foreign exchange trading
This project studies the effectiveness of Technical Analysis in the foreign exchange market. The study used a single currency for its testing, namely the DM against US$ exchange rate. Testing is performed on an ex-post basis, using past exchange rate for the test. With numerous Technical Analysis...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/64539 |
| _version_ | 1826128515337027584 |
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| author | Lim, Wee Kian Ho, Daniel Boon Chung Yang, Chin Chung |
| author2 | Malick Sy |
| author_facet | Malick Sy Lim, Wee Kian Ho, Daniel Boon Chung Yang, Chin Chung |
| author_sort | Lim, Wee Kian |
| collection | NTU |
| description | This project studies the effectiveness of Technical Analysis in the foreign
exchange market. The study used a single currency for its testing, namely the
DM against US$ exchange rate. Testing is performed on an ex-post basis,
using past exchange rate for the test. With numerous Technical Analysis
models being available in the market, four more commonly used models are
selected and their trading rules implemented in this study. They are the Single
Moving Average, the Double Moving Average, the Momentum and the RSI.
The study reveals evidence of profitability and accuracy of trading decisions
made based on the trading rules. Certain models are found to be consistently
profitable in the testing period while others are not. Although this definitely
does not prove that Technical Analysis is effective as a whole, it does show
that models of Technical Analysis with certain parameters produce better
results than other parameters, take for example the 1 0 against 30 days
Moving Average and the 4 days Momentum. Hence, the result suggests that
the key to effective trading with Technical Analysis lies with selecting the
appropriate model and using the right parameter when trading in a particular
currency. |
| first_indexed | 2024-10-01T07:26:12Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/64539 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:26:12Z |
| publishDate | 2015 |
| record_format | dspace |
| spelling | ntu-10356/645392023-05-19T06:09:02Z Study of the effectiveness of technical analysis in foreign exchange trading Lim, Wee Kian Ho, Daniel Boon Chung Yang, Chin Chung Malick Sy Nanyang Business School DRNTU::Business This project studies the effectiveness of Technical Analysis in the foreign exchange market. The study used a single currency for its testing, namely the DM against US$ exchange rate. Testing is performed on an ex-post basis, using past exchange rate for the test. With numerous Technical Analysis models being available in the market, four more commonly used models are selected and their trading rules implemented in this study. They are the Single Moving Average, the Double Moving Average, the Momentum and the RSI. The study reveals evidence of profitability and accuracy of trading decisions made based on the trading rules. Certain models are found to be consistently profitable in the testing period while others are not. Although this definitely does not prove that Technical Analysis is effective as a whole, it does show that models of Technical Analysis with certain parameters produce better results than other parameters, take for example the 1 0 against 30 days Moving Average and the 4 days Momentum. Hence, the result suggests that the key to effective trading with Technical Analysis lies with selecting the appropriate model and using the right parameter when trading in a particular currency. BUSINESS 2015-05-28T02:17:52Z 2015-05-28T02:17:52Z 1992 1992 Final Year Project (FYP) http://hdl.handle.net/10356/64539 en Nanyang Technological University 123 p. application/pdf |
| spellingShingle | DRNTU::Business Lim, Wee Kian Ho, Daniel Boon Chung Yang, Chin Chung Study of the effectiveness of technical analysis in foreign exchange trading |
| title | Study of the effectiveness of technical analysis in foreign exchange trading |
| title_full | Study of the effectiveness of technical analysis in foreign exchange trading |
| title_fullStr | Study of the effectiveness of technical analysis in foreign exchange trading |
| title_full_unstemmed | Study of the effectiveness of technical analysis in foreign exchange trading |
| title_short | Study of the effectiveness of technical analysis in foreign exchange trading |
| title_sort | study of the effectiveness of technical analysis in foreign exchange trading |
| topic | DRNTU::Business |
| url | http://hdl.handle.net/10356/64539 |
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