Abstract
The aim of this research is to examine the result of the application of the indicators Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Momentum and Stochastic in different companies of the Spanish continuous market. By using these indicators, it is intended to give purchase and sale recommendations to small investors. The generation of great capital gains depends on the type of the stock exchange company and the indicator which is being used. In addition, this research solves the problems in case of ambiguity, in the indicators, for the traders.
Acknowledgements
Financial support given by Government of the Principality of Asturias. The authors would like to thank the reviewers for their comments that help improve the article.
Notes
1 Short selling is the practice of selling assets, usually securities that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to the lender. It is a form of reverse trading.