IDEAS home Printed from https://ideas.repec.org/a/vrs/ceuecj/v10y2023i57p148-162n5.html
   My bibliography  Save this article

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

Author

Listed:
  • Oktaba Paweł

    (National Bank of Poland, Regional Branch in Olsztyn, al. M. J. Piłsudskiego 11/17, 10-575 Olsztyn, Poland)

  • Grzywińska-Rąpca Małgorzata

    (University of Warmia and Mazury in Olsztyn, Faculty of Economic Sciences, Plac Cieszyński 1/429A, 10-720 Olsztyn, Poland)

Abstract

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

Suggested Citation

  • Oktaba Paweł & Grzywińska-Rąpca Małgorzata, 2023. "Modification of technical analysis indicators and increasing the rate of return on investment," Central European Economic Journal, Sciendo, vol. 10(57), pages 148-162, January.
    • Handle: RePEc:vrs:ceuecj:v:10:y:2023:i:57:p:148-162:n:5
    DOI: 10.2478/ceej-2023-0009
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/ceej-2023-0009
    Download Restriction: no
    File URL: https://libkey.io/10.2478/ceej-2023-0009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Currency exchange rate; Intraday Trading; OTC Market; Technical analysis; G11; G15; G17;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ceuecj:v:10:y:2023:i:57:p:148-162:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.