This study aimed to prove the validity tool of technical analysis it is the Moving average converging divergent MACD and it ability to achieve returns after deducting the cost of transactions greater than the returns of the buy and hold strategy after deducting the cost of transactions, and the search was based on tow mean hypotheses , the first hypothesis that "the signals MACD indicator tool does not help in achieving the revenue after deducting the cost greater than returns the returns of the buy and hold strategy after deducting the cost of transactions " , and the second main hypothesis " the osculate MACD around zero line is the best signal " . achieve the goal of the study select all listed companies in Iraq security exchange and was selected sample of (52) companies were divided (17) companies in the banking sector, and (4) companies in the insurance sector, and (2) the two companies in investment sector, and (5) companies in the service sector, and (13) companies in the manufacturing sector, and (7) companies in the hotel sector, tourism, and (4) companies in the agriculture sector, has accounted for this sample (63%) almost from the study of society (85) is a company listed on the Iraq Stock Exchange .the study time period stretching from (1/1/2012) and up to (31.12.2013) and using financial and statistical methods , computer software specially designed for research findings the study to a number of conclusions , including :-
1. The the Moving average converging divergent MACD tool help achieve returns after deducting the cost greater than the returns of the buy and hold strategy after deducting the cost of transactions , according to the four method to generate signals of MACD .
2. The method of intersection between the MACD signal line curve is the best way to generate signals according to the MACD indicator and trading accordingly is the best.
3. the buy and hold strategyis not the best strategy for trading accordingly in the stock market. |