Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia?

This study aims to test the ability of technical analysis for predicting the stock price and generating profits. This study employed two of the technical analysis indicators, namely Variable Moving Average (VMA) rules and Elliott Wave Principle incorporated with Fibonacci sequences. Generally, over...

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Main Author:	Lee, Kelvin Yong Ming
Format:	Thesis
Language:	English English
Published:	2016
Subjects:	HG Finance
Online Access:	http://ir.unimas.my/id/eprint/30521/1/Kelvin%20Lee.pdf http://ir.unimas.my/id/eprint/30521/4/Kelvin.pdf
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id	my-unimas-ir.30521
record_format	uketd_dc
spelling	my-unimas-ir.305212023-07-03T04:09:58Z Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia? 2016 Lee, Kelvin Yong Ming HG Finance This study aims to test the ability of technical analysis for predicting the stock price and generating profits. This study employed two of the technical analysis indicators, namely Variable Moving Average (VMA) rules and Elliott Wave Principle incorporated with Fibonacci sequences. Generally, over the full sample period, this study found that VMA rules were useful technical indicator in analysing the medium capitalization stocks and generating higher return. Besides that, VMA rules are further tested through the sub-sample test, out-of-sample test and regression analysis. Throughout the sub-sample test and out-of-sample test, this study also strengthens the evidence that VMA rules is successfully generating returns based on the medium capitalization stocks. Generally, this study found that 5 days was the most appropriate short term moving average for the analysis of the medium capitalization stocks. In addition, this study found that the signals emitted by all the VMA rules have significant relationship with the stock returns. As for Elliott Wave Principle incorporated with Fibonacci sequences indicator, this study found that the stock price movements of large capitalization can be predicted accurately as the prediction error during the impulsive wave is significantly less than 10 percent. However, the Elliott Wave Principle incorporated with Fibonacci sequences indicator is only successful in predicting the stock price movement during the pre- and post-crisis periods through the sub-sample test. Universiti Malaysia Sarawak(UNIMAS) 2016 Thesis http://ir.unimas.my/id/eprint/30521/ http://ir.unimas.my/id/eprint/30521/1/Kelvin%20Lee.pdf text en public http://ir.unimas.my/id/eprint/30521/4/Kelvin.pdf text en validuser masters Universiti Malaysia Sarawak(UNIMAS) Faculty of Economics and Business
institution	Universiti Malaysia Sarawak
collection	UNIMAS Institutional Repository
language	English English
topic	HG Finance
spellingShingle	HG Finance Lee, Kelvin Yong Ming Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia?
description	This study aims to test the ability of technical analysis for predicting the stock price and generating profits. This study employed two of the technical analysis indicators, namely Variable Moving Average (VMA) rules and Elliott Wave Principle incorporated with Fibonacci sequences. Generally, over the full sample period, this study found that VMA rules were useful technical indicator in analysing the medium capitalization stocks and generating higher return. Besides that, VMA rules are further tested through the sub-sample test, out-of-sample test and regression analysis. Throughout the sub-sample test and out-of-sample test, this study also strengthens the evidence that VMA rules is successfully generating returns based on the medium capitalization stocks. Generally, this study found that 5 days was the most appropriate short term moving average for the analysis of the medium capitalization stocks. In addition, this study found that the signals emitted by all the VMA rules have significant relationship with the stock returns. As for Elliott Wave Principle incorporated with Fibonacci sequences indicator, this study found that the stock price movements of large capitalization can be predicted accurately as the prediction error during the impulsive wave is significantly less than 10 percent. However, the Elliott Wave Principle incorporated with Fibonacci sequences indicator is only successful in predicting the stock price movement during the pre- and post-crisis periods through the sub-sample test.
format	Thesis
qualification_level	Master's degree
author	Lee, Kelvin Yong Ming
author_facet	Lee, Kelvin Yong Ming
author_sort	Lee, Kelvin Yong Ming
title	Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia?
title_short	Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia?
title_full	Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia?
title_fullStr	Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia?
title_full_unstemmed	Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia?
title_sort	is technical analysis profitable and capable for stock price prediction in bursa malaysia?
granting_institution	Universiti Malaysia Sarawak(UNIMAS)
granting_department	Faculty of Economics and Business
publishDate	2016
url	http://ir.unimas.my/id/eprint/30521/1/Kelvin%20Lee.pdf http://ir.unimas.my/id/eprint/30521/4/Kelvin.pdf
_version_	1783728386496004096

Is Technical Analysis Profitable and Capable for Stock Price Prediction in Bursa Malaysia?

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