Title

Efficacy of Refined MACD Indicators: Evidence from Indian Stock Markets.

Authors

Subramanian, V.; Balakrishnan, K. P.

Abstract

Moving Average Convergence Divergence (MACD) indicator is the most widely used technical analysis tool to identify trading signals based on the trends in security prices. On testing some of the standard and refined MACD indicators on the movements of BSE Sensex and NSE Nifty during 1997-2010, it was found that the returns of refined MACD indicators outperformed the benchmark market returns. Thus, the findings of this paper challenge the Efficient Market Hypothesis, which rules out the possibility of earning excess returns.

Subjects

MOVING average process; ECONOMIC convergence; ECONOMIC indicators; SECURITIES trading; STOCK prices; EFFICIENT market theory; RATE of return

Publication

IUP Journal of Applied Finance, 2014, Vol 20, Issue 1, p76

ISSN

0972-5105

Publication type

Academic Journal