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An Examination on the use of Technical Trading rules versus a Buy-and-Hold Trading Strategy in the Irish Stock Market.

Crosbie, Jonathan (2012) An Examination on the use of Technical Trading rules versus a Buy-and-Hold Trading Strategy in the Irish Stock Market. Masters thesis, Dublin, National College of Ireland.

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Abstract

Much literature debates the validity of stock price prediction. Within this research the accuracy of trading rules was examined. In particular this research focused on whether certain basic technical analysis methods for investing in the stock market can yield higher returns, on average, than a simple buy-and-hold strategy. This method of technical analysis selected for investigation was the crossing of moving averages. Such an approach allows for central research objective to be addressed where the central objective was to identify the usefulness of technical analysis, specifically the moving averages trading rule approach and estimate whether it yields higher returns lower losses than a Simple Buy-and-Hold trading strategy. This research will contribute to existing literature by carrying out a quantitative examination of trading rules within the Irish stock market. A sample of fifty-six Irish stocks which were quoted on the ISEQ was selected for analysis Criteria for the sample were that the stock must have traded for a least five years between the years 2001 and 2011. The returns on the fifty-six stocks were recorded and empirical tested as to the usefulness and power o f moving average trading rules in price prediction was undertaken.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance > Investment > Stock Exchange > Irish Stock Exchange
Divisions: School of Business > Masters of Science in Management
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 17 May 2013 14:48
Last Modified: 17 May 2013 14:48
URI: http://trap.ncirl.ie/id/eprint/793

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