Technical analysis and the London stock exchange: testing the MACD and RSI rules using the FT30
- 6 November 2008
- journal article
- research article
- Published by Taylor & Francis Ltd in Applied Economics Letters
- Vol. 15 (14), 1111-1114
- https://doi.org/10.1080/13504850600993598
Abstract
This article examines two oscillators – the Moving Average Convergence–Divergence (MACD) and the Relative Strength Index (RSI) – to see if these rules are profitable. Using 60-year data of the London Stock Exchange FT30 Index, it is found that the RSI as well as the MACD rules can generate returns higher than the buy-and-hold strategy in most cases.Keywords
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