Open AccessTHE ACCURACY TEST OF TECHNICAL ANALYSIS OF MOVING AVERAGE, BOLLINGER BANDS, AND RELATIVE STRENGTH INDEX ON STOCK PRICES OF COMPANIES LISTED IN INDEX LQ45
Author(s) -
Dipta Amelia Daniswara,
Hendro Widjanarko,
Khoirul Hikmah
Publication year - 2022
Publication title -
indikator: jurnal ilmiah manajemen dan bisnis
Language(s) - English
Resource type - Journals
ISSN - 2598-4888
DOI - 10.22441/indikator.v6i2.14806
Subject(s) - econometrics , capitalization weighted index , stock (firearms) , index (typography) , stock market , technical analysis , statistics , stock market index , economics , investment decisions , financial economics , mathematics , computer science , finance , behavioral economics , geography , context (archaeology) , archaeology , world wide web
This study aims to test and provide empirical evidence of the accuracy of the technical analysis indicators Moving Average, Bollinger Bands, and Relative Strength Index in predicting the direction of stock price movements. This research focuses on stocks that represent the Indonesian stock Market, namely the LQ45 stock index for the period February 2021 - July 2021. Data were collected through the tradingview.com platform. To test the research hypothesis, the statistical differences between the predictions and the reality of stock price movement were tested using Mann-Whitney non-parametric test. The results of this study found that there was no difference between the predictions of the direction of stock price movements produced by the three indicators and the actual prices, which means that the three indicators are accurate. From the results of the analysis and comparison of the performance of the three indicators from the number of signals, the average rate of return, and the sample observations, it can be concluded that the Relative Strength Index indicator has a more optimal accuracy performance compared to the other two indicators. indicator. The results of this study can be used as a reference for capital market investors in choosing technical analysis methods that can help make more appropriate investment decisions.