A COMPARATIVE STUDY OF TECHNICAL INDICATORS

Dissertation submitted to CMJ University in partial fulfillment of the requirements for the award of the degree of

Master of Philosophy (Commerce)

By Mr. Anthony Savio Herminio Da Piedade Fernandes

Reg. No: 80183910100410

Under the Guidance of Dr. Devinder Singh

121/2, Ram Nagar, Kurukshetra, Haryana

CMJ UNIVERSITY
SHILLONG

December 2011

DECLARATION CERTIFICATE

I declare that the Dissertation entitled A Comparative Study of Technical Indicators submitted by me in partial fulfillment for the award of Master of Philosophy (M.Phil) in Commerce is the record of research work carried out by me during the period from January 2011 to December 2011 under the guidance of Dr. Devinder Singh and has not formed the basis for the award of any degree, diploma, associateship, fellowship, titles in this or any other University or other similar institution of higher learning.

Date: Place:

Signature of the Candidate (Anthony Savio Herminio Da Piedade Fernandes)

CERTIFICATION BY SUPERVISOR
I certify that the Dissertation entitled A Comparative Study of Technical Indicators submitted for the degree of Master of Philosophy (M.Phil) in Commerce is the bonafide record of research work carried out by Mr. Anthony Savio Herminio Da Piedade Fernandes during the period from January 2011 to December 2011 under my guidance and supervision and that this research work has not formed the basis for the award of any degree, diploma, associateship, fellowship, or other similar titles in this university or any other University or institution.

Date: Place:

Signature of the Supervisor

Date: Place:

Head of the Department

LIST OF FIGURES

Figure Number 6.1 6.2 6.3 7.1 8.1 8.2 9.1 10.1 11.1 11.2

Titles

Page Numbers

Moving Average Convergence / Divergence (MACD) Moving Average Convergence / Divergence (MACD) Moving Average Crossover System and MACD Indicator Relative Strength Index Resistance becomes support Resistance, pivot and support Elliott Wave Fibonacci chart Gann chart Gann chart

12 12 13 16 18 19 22 27 29 29

TABLE OF CONTENTS

Chapter Number 1 1.1 1.2 1.3 1.4 1.5 2 3 4 5 6 6.1 6.2 6.2.1 6.2.2 6.2.3 6.3 6.4 7 7.1 7.2 Introduction

Title & Sub Tiles

Page Numbers 1 2 3 4 4 4 6 7 8 9 10 10 10 10 11 11 11 13 14 14 14

Concept & Definition Literature Review Objectives of the Study Data Methodology Organisation of the Study Deriving technical analysis indicators Types of technical indicators The benefits of a technical indicator key points about using technical analysis indicators Moving Average Convergence / Divergence (MACD) Overview Interpretation Crossovers Overbought / oversold conditions Divergences Example Calculation Relative Strength Index Overview Interpretation

7.3 7.4 8 8.1 8.2 8.3 8.4 9 9.1 9.2 9.3 9.4 10 10.1 10.2 10.2.1 10.2.2 10.2.3 10.2.4 10.3 11 11.1 11.2 11.3 12

Example Calculation Pivot, Support and Resistance Lines Support and resistance levels fade in importance over time Calculations Support and resistance mechanism Resistance becomes support The Elliott Waves Overview Overall design Degree Example Fibonacci Numbers Overview Interpretation Arcs Fans Retracements Time Zones Example The Gann Numbers Overview Example Interpretation Findings and Conclusion

15 16 17 17 17 18 18 20 20 20 21 22 25 25 25 25 26 26 27 27 28 28 29 30 32 35

BIBLIOGRAPHY