Abstract
MACD is one of the widely reported technical indicators used in stock market to trigger ‘buy’ and ‘sell’ based on the position of ‘current close’ near ‘upper end’ or ‘lower end’ of the ‘price range’ for certain periods back. But controversy over its futurity and futility for stock price prediction still remains unsettled in various markets. This paper examines its predictive validity and concludes absence of profitability and consistency.
Keywords: Moving Average Convergence Divergence Index, Superior wealth, signal strategies, long cash, short cash, buy and hold, Terminal and daily deals, technical analysis, stock market.
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