Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks

This paper aims to contribute to technical-scientific knowledge about the tools needed to support the decision making in investments in the capital market. We focus our analysis on the following technology companies’ performance: Facebook, Apple, Amazon, Netflix and Google (FAANG). The simulatio...

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Main Author: de Almeida, Luís António Gomes
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/16772/
http://journalarticle.ukm.my/16772/1/37110-138521-1-PB.pdf
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author de Almeida, Luís António Gomes
author_facet de Almeida, Luís António Gomes
author_sort de Almeida, Luís António Gomes
building UKM Institutional Repository
collection Online Access
description This paper aims to contribute to technical-scientific knowledge about the tools needed to support the decision making in investments in the capital market. We focus our analysis on the following technology companies’ performance: Facebook, Apple, Amazon, Netflix and Google (FAANG). The simulation covers 18,389 observations, applying strategies based on the Ichimoku dynamics, technical analysis indicators, MACD and RSI, and the purchase and maintenance strategy (B&H), that gives evidence that the dynamics of the past is the best predictor for the future. We also found theoretical and empirical evidence of the predictive capacity of these investment strategies, and their performance was evaluated by the return provided, through different negotiation methodologies tested. The Ichimoku system trading dynamics offers the best profitability and the lowest concerning the risk, in the short and medium term, evaluated by the return and number of trades with positive returns.
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spelling oai:generic.eprints.org:167722021-06-14T03:55:05Z http://journalarticle.ukm.my/16772/ Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks de Almeida, Luís António Gomes This paper aims to contribute to technical-scientific knowledge about the tools needed to support the decision making in investments in the capital market. We focus our analysis on the following technology companies’ performance: Facebook, Apple, Amazon, Netflix and Google (FAANG). The simulation covers 18,389 observations, applying strategies based on the Ichimoku dynamics, technical analysis indicators, MACD and RSI, and the purchase and maintenance strategy (B&H), that gives evidence that the dynamics of the past is the best predictor for the future. We also found theoretical and empirical evidence of the predictive capacity of these investment strategies, and their performance was evaluated by the return provided, through different negotiation methodologies tested. The Ichimoku system trading dynamics offers the best profitability and the lowest concerning the risk, in the short and medium term, evaluated by the return and number of trades with positive returns. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16772/1/37110-138521-1-PB.pdf de Almeida, Luís António Gomes (2020) Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks. Jurnal Pengurusan, 59 . pp. 1-15. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1328
spellingShingle de Almeida, Luís António Gomes
Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks
title Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks
title_full Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks
title_fullStr Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks
title_full_unstemmed Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks
title_short Technical indicators for rational investing in the technology companies: the evidence of FAANG stocks
title_sort technical indicators for rational investing in the technology companies: the evidence of faang stocks
url http://journalarticle.ukm.my/16772/
http://journalarticle.ukm.my/16772/
http://journalarticle.ukm.my/16772/1/37110-138521-1-PB.pdf