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Original Articles

Technical analysis and the London stock exchange: testing the MACD and RSI rules using the FT30

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Pages 1111-1114 | Published online: 06 Nov 2008
 

Abstract

This article examines two oscillators – the Moving Average Convergence–Divergence (MACD) and the Relative Strength Index (RSI) – to see if these rules are profitable. Using 60-year data of the London Stock Exchange FT30 Index, it is found that the RSI as well as the MACD rules can generate returns higher than the buy-and-hold strategy in most cases.

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