Evaluating the Prediction Accuracy of MACD and RSI for Different Stocks in Terms of Standard Market Suggestions

Abstract

Technical Indicators make an important aspect of the selection of stocks on the NYSE. Using standard suggestions provided by MACD and RSI has been capable of identifying nearly 56% of growing stocks during a distressed market. In this research, we have used the same technical parameters used in major stock exchanges (SE) in the whole world and observed their application in many locally proficient stocks of various countries. The research target will be able to generate the effectivity of MACD & RSI as a technical predictor for high-quality stocks from different stock exchanges (SE) to understand the capability of MACD & RSI in terms of standard parameters for predicting stock price directions. We have observed that nearly 26 stocks from 7 different markets have been able to make correct predictions of stock price directions with 56% on MACD and 81% on RSI. Thus, it is considered that MACD & RSI are qualified approaches for making stock price predictions for these stocks.