A Study on the Effectiveness of Moving Average Convergence and Divergence Using Select Stocks from Automobile Sector in NSE India

M. Anitha; Dr. R. Padmaja

Volume : VI, Issue : XII, December - 2016

A Study on the Effectiveness of Moving Average Convergence and Divergence Using Select Stocks from Automobile Sector in NSE India

M. Anitha, Dr. R. Padmaja

Abstract :

Technical analysis is the art of analyzing the movement of prices and forecasting the short term movement of prices using charts with technical indicators as a primary tool to make better investments. This paper attempts to measure the effectiveness of a technical indicator Moving Average Convergence and Divergence (MACD) on five selective stocks of the Automobile sector. This paper studies which of the selected stocks will give more profits and more average return per trade, if traded according to MACD th signals. The study is purely based on the secondary data. The prices of the stocks were taken for four years from 30th September 2012 to 30 September 2016 and the signals given by the technical indicator were plotted accordingly. Interpretations and suggestions to investors are given based on the analysis