Profitability of The Moving Averages Technical Trading Rules in an Emerging Stock Market-A Study of Individual Stocks Listed On Pakistan Stock Exchange


Volume 14 Issue 2 2018


Muhammad Arif
Shaheed Benazir Bhutto University, Shaheed Benazirabad.

Muddasar Hasan
Massey University, New Zealand.

Abu Bakr
Massey University, New Zealand.

Muhammad Ziaullah
Department of Business Administration, Ghazi University, D.G. Khan.

Muhammad Ali Tarer
Department of Sociology, Ghazi University, D.G. Khan.

Abstract This paper investigates the gainfulness of the moving averages (MA) timing method over the purchase and holds procedure for single stocks deal in Pakistan Stock Exchange. We used the approach of single stock returns and indeterminate evidence of MA timing methodology's insightful ability to increase higher returns over the strategy of purchase and hold. In addition, we report market risk-adjusted returns to expel any market development impacts and apply elective moving averages lag lengths to check the robustness of our outcomes. We look at that individual stock returns are noisier than portfolio returns and the fundamental technical exchanging principle of moving average don't be able to anticipate single stock returns. We propose the utilization of more perplexing trading rules in future investigations to determine the gainfulness of technical trading rules in individual stocks.
Keywords Individual stocks, moving averages, technical analysis
Year 2018
Volume 14
Issue 2
Type Short Report
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification L1, P42, A11
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type of Review Double Blind Peer Reviewed
Format PDF
Paper Link
Page 67-76
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