Technical analysis : western indicators versus Japanese indicators.

• Main Authors: Chng, Keng Hooi., Tan, V Yin., Yap, Suh Shin.
• Other Authors: Cheang, Gerald Hock Lye
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::Finance::Stock exchanges
• Online Access: http://hdl.handle.net/10356/10330
• Institution: Nanyang Technological University

For many decades, technical analysis received a great deal of attention from the public due to its special attractions. One of the many attractions of technical analysis is that its methodology can be applied almost identically in any market anywhere. Hence, it becomes a preferable tool by many market participants. However, people have abandoned the traditional technical indicators that might perform better than those modern indicators. Therefore in this paper, we seek to compare the effectiveness of the Western indicators versus the traditional Japanese indictors in terms of profitability. In this research paper, two indicators from each category have been selected, which are the Moving Average Convergence Divergence (MACD), the Stochastic Oscillator, the Kagi chart and the Renko chart. They are tested in the stock market, the foreign exchange market and the commodity market to determine their consistency in different markets and are compared with the passive Buy and Hold strategy. Furthermore, transaction costs are also included in our research to better reflect the real life condition.