Abstract
There are two types of analysis done for a stock market. One is fundamental analysis, where an investor looks at an intrinsic value of the stock, and another is technical analysis, where investors determine the future trend of the market looking at the current pattern or trend of the market. This paper is focused on one of the technical analysis tools, i.e., Moving Average Convergence-Divergence. It is a tool based on the three exponential moving average (9-12-26 EMA Rule). The MACD analysis, with the help of a single line, was helpful to find out the exact bullish and the bearish trend of the Nepse. A signal line is a benchmark to determine the stock market moving either to a bullish or bearish trend. It can help an investor, where the market is going in a direction. A market convergence, divergence, and crossover were better identified with the help of the MACD histogram. The paper found that the Nepse return was stable for a very minimal period from 1998-99 to 2019-20. The shift from the bullish to bearish or vice-verse were seen easily identified with the help of a MACD histogram. Finally, a better-combined knowledge of moving average and candlestick chart analysis will help an investor, to put a clear picture of a market trend with the help of MACD analysis.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.