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

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

Open Access
|Jun 2023

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.

DOI: https://doi.org/10.2478/ceej-2023-0009 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001
Language: English
Page range: 148 - 162
Published on: Jun 30, 2023
Published by: Faculty of Economic Sciences, University of Warsaw
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2023 Paweł Oktaba, Małgorzata Grzywińska-Rąpca, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution 4.0 License.