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Sutte Indicator: A Technical Indicator in Stock Market

Author

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  • Ansari Saleh Ahmar

    (Department of Statistics, Universitas Negeri Makassar, Indonesia)

Abstract

This study aims at development of the technical indicator in Stock Market as Sutte indicator. Sutte indicator in stock trading that will assist in the investment decision-making process which is to buy or sell stocks. This study took data from PT. Astra Agro Lestari Tbk. Which is listed in the Indonesia stock exchange in the period of 5 April 2001 - 20 September 2016. To find out the performance of Sutte indicator, two other technical analysis are used as a comparison, they are simple moving average (SMA) and moving average convergence/divergence (MACD). The mean of square error (MSE), mean absolute deviation (MAD), and mean absolute percentage error (MAPE) are used to find out a comparison of the level of reliability in predicting the stock data. The results of this study are Sutte indicator could be used as a reference in predicting stock movements. Sutte indicator have a better level of reliability compared to two other indicators method SMA and MACD based on the MSE, MAD and MAPE.

Suggested Citation

  • Ansari Saleh Ahmar, 2017. "Sutte Indicator: A Technical Indicator in Stock Market," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 7(2), pages 223-226.
    • Handle: RePEc:eco:journ1:2017-02-30
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Rommy Pramudya & Sakina Ichsani, 2020. "Efficiency of Technical Analysis for the Stock Trading," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 58-67, January.
    2. Ansari Saleh Ahmar, 2019. "Sutte Indicator: an approach to predict the direction of stock market movements," Papers 1903.11642, arXiv.org.
    3. Dong-Her Shih & To Thi Hien & Ly Sy Phu Nguyen & Ting-Wei Wu & Yen-Ting Lai, 2022. "A Modified γ -Sutte Indicator for Air Quality Index Prediction," Mathematics, MDPI, vol. 10(17), pages 1-15, August.
    4. Mohammed Bouasabah & Oshamah Ibrahim Khalaf, 2023. "A Technical Indicator for a Short-term Trading Decision in the NASDAQ Market," Advances in Decision Sciences, Asia University, Taiwan, vol. 27(3), pages 1-13, September.
    5. Rahman, Abdul & Ahmar, Ansari Saleh, 2017. "Forecasting of Primary Energy Consumption Data in the United State: a comparison between ARIMA and Holter Winters Models," INA-Rxiv snxrq, Center for Open Science.
    6. Ahmar, Ansari Saleh, 2017. "α-Sutte Indicator: Suatu Pendekan Baru dalam Peramalan Data," OSF Preprints rknsv, Center for Open Science.
    7. Ansari Saleh Ahmar & Abdul Rahman & Andi Nurani Mangkawani Arifin & Alfatih Abqary Ahmar, 2017. "Predicting movement of stock of “Y” using Sutte Indicator," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1347123-134, January.
    8. Ahmar, Ansari Saleh & Rahman, Abdul & Mulbar, Usman, 2017. "Implementation of α-Sutte Indicator to Forecasting Consumer Price Index in Turkey," INA-Rxiv s8jzu, Center for Open Science.

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    Keywords

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    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets

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