Modification of technical analysis indicators and increasing the rate of return on investment

• Authors: Paweł Oktaba , Małgorzata Grzywińska-Rąpca

Abstracts

EN

Financial markets are seen as one of the most important markets in economic terms. The activities of investors in thefinancial markets consist in predicting how best to invest the accumulated capital, using all kinds of analyzes andforecasts. In the literature on the subject, apart from fundamental analysis, technical analysis is distinguished. Whilethe first one is to help you choose a specific asset with profitable potential, technical analysis is designed to help theinvestor find a specific moment that is most suitable for buying or selling. The aim of the article is to demonstratethe potential benefits associated with modifying the default settings of technical analysis indicators on the exampleof the EUR/USD currency pair using the MetaTrader4 investment platform. Analizing was carried out on the basis ofthe most popular currency pair in terms of turnover on the Forex market - EUR/USD. The research used an investmentstrategy based on Parabolic SAR and Relative Strength Index RSI technical analysis indicators, whose indications wereverified both in the context of default settings and after the author‘s modification. The results of the conducted rese-arch indicate significant differences, depending on the adopted parameters of the above-mentioned indicators.

Keywords

EN

Currency exchange rate; Intraday Trading; OTC Market; Technical analysis

• Publisher: Uniwersytet Warszawski. Wydawnictwo Naukowe Wydziału Zarządzania
• Journal: Central European Economic Journal
• Year: 2023
• Volume: 10
• Issue: 57
• Pages: 148-162

Dates

published

2023

Contributors

author

Paweł Oktaba

• National Bank of Poland, Regional Branch in Olsztyn

author

Małgorzata Grzywińska-Rąpca

• University of Warmia and Mazury in Olsztyn, Faculty of Economic Sciences

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Identifiers

DOI

10.2478/ceej-2023-0009

Biblioteka Nauki

2216199