Moving average strategies : their effectiveness and implications for SES stocks
There are two distinct approaches to stock investment. They are the fundamental analysis approach and the technical analysis approach. These two approaches are at times used to compliment one another when making investment decisions. This research project...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/55753 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | There are two distinct approaches to stock investment. They are the fundamental analysis
approach and the technical analysis approach. These two approaches are at times used to
compliment one another when making investment decisions.
This research project focuses on the study of technical analysis. An empirical test was done to
investigate the effectiveness of the moving average strategies using the SES All Share Index, for
the period 1989 to 1993 . The strategies selected for testing are the simple moving average,
exponential moving average, crossover of short term and long term moving average, the moving
average convergence divergence and the moving average oscillator. The return generated by these
moving average strategies was compared with a buy and hold strategy. A t-test was used to test
the significance of the results obtained.
The results of the analysis showed that the short term moving averages were generally able to
outperform the buy and hold strategy. However, the t-test revealed that none of the results
obtained were significant at the 95% confidence level. |
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