Abstract
The purpose of this study is to determine which indicators are more capable of showing more accurate sell and buy signals on the LQ45 index by using the oscillator indicator Moving Average Divergent Convergent (MACD), Bollinger Band, and Relative Strength Index (RSI). The results in this study indicate that the sell signal can be captured well by the Bollinger band and MACD indicators, but it cannot be captured properly by the RSI, the volume can be small or heading and are in the side ways, while the MACD plays a too slow role in capturing the signal buy compared to Bollinger bands and RSI. The use of a single indicator will never show a buy and sell signal that is really accurate, this is based on the results of research that shows the difference in timeliness in Bollinger, RSI and also MACD so that the combination of several types of indicators will be better compared to using single indicators. Although in statistics there are no significant differences, there are only differences in increment and improvement in the placement of existing values, but in this case, the order of this value is crucial for traders because it requires very high accuracy to determine the right decision in daily transactions.
Highlights
In this era of globalization, investing has become a familiar word and has become a common thing that is done by the world community, especially Indonesia
It can be explained that this shows the difference between each graph in showing the numbers when paired with the current stock price
It can be seen that starting from October 24 there was an equation between Bollinger and Relative Strength Index (RSI) which in the graph shows the RSI graph that almost touched the upper limit
Summary
In this era of globalization, investing has become a familiar word and has become a common thing that is done by the world community, especially Indonesia. In every stock trading transaction, investors or investment managers are faced with the choice to buy or sell shares. There are two types of analysis in the world of stock investment, namely fundamental analysis and technical analysis (Ahmar, 2017). According Ahmar (2017) said that in conducting technical analysis using previous price movements and/or other market data, such as transaction volumes, to assist in the decision making process on the trading asset market. This decision is usually obtained by implementing some simple rules on the stock price hierarchy).Technical analysis consists of various indicators to assist decision making with several categories of indicators. Leading Indicator can quickly predict price movements, generally used to measure whether overbought or oversold (Ahmar, 2018)
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