Managing Trading Decisions Using The True Strength Index –An Applied Study

The purpose of this research is to test the ability of the true strength index To time andmanage trading in the financial market to select the best stocks and achieve a higher returnthan the Simple buy and hold strategy. And To achieve the objectives of the research, it reliedon the main hypothesis, which is By using the True Strength Index to manage tradingdecisions buying and selling, can be achieved higher returns than the buy and hold strategy .The research community has been identified with all stocks listed on the Iraq StockExchange. Implementing the financial research tests requires selecting a sample from theresearch community that fulfills the test requirements according to a number of conditions So(38) companies were nominated to be the research sample It was distributed by (17)companies in the banking sector. and (2) companies in the insurance sector, and (4)companies in the service sector, and (7) companies in the industrial sector, and (6)companies in the hotel and tourism sector, and one company in the telecommunicationssector, And one company in the agricultural sector, This sample constituted approximately(30%) of the research community of (128) companies. The research period extended from(1/2/2016) to (31/12/2021), by Using financial and statistical methods, the research reached anumber of conclusions, the most important of which are Trading can be timed and managedsuccessfully using the True Strength Index and using it with General historical informationcan achieve returns that exceed the returns of buy and hold.