Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Role of using the Relative Strength Index in Making Speculation Decision in Stock Applied Research in the Iraq Stock Exchange

Murtadha Alhilfi

http://dx.doi.org/10.6007/IJARAFMS/v9-i1/5855

Open access

The Investment in the Stock Exchange is a fundamental aspect in modern economics, especially the investment in the shares of companies, it became attracting a lot of Investors and speculators with different objectives according to possibilities and nature each one of them, but these participants in the Stock Exchange hesitate about find the better Investment opportunity for them. They have Fears of bad decision Investment that don’t give a high return with the lowest risk. This makes the Investors and speculators need to use an Indicator that helps them in making a rational speculation decision, And one of best indicators is Relative Strength Index RSI which Can determination the appropriate timing for speculating in the shares of companies depending on the historical data of prices stock. Given that the speculators in the Iraqi stock market are afraid to enter into speculation because of lack of finding the best tools that guide their decisions, and for this reason, this subject has been chosen. This study is aimed to know the role of using the Relative Strength Index in making the best decision to speculate on shares listed in the Iraqi Stock Exchange and on this basis this problem the research has the main question: ((How can RSI be used to make an optimal decision to speculate on stocks?). It concluded in this study that the use of Relative Strength Index had a fundamental and effective role in rationalizing the speculation decisions in the shares of the Bank of Baghdad which listed in the Iraq Stock Exchange, Where assist on determination of the right timing for investment through forecasting shares prices upwards and downwards, The Speculator Purchase at forecasting the price will upward and selling at forecasting the price will downward.

1. Al- Shawashra, F. M. (2008). Investment in the securities of Stock Exchange, Dar Wael for Publishing, First Edition.
2. Abu Hatif, N. K. (2011). The Effect of Technical Analysis on the Investors Decision In the Palestine Stock Exchange, Master's thesis submitted to the Department of Accounting and Finance, Faculty of Commerce, Islamic University - Gaza.
3. Abu Tarboush, R. M. (2010). Fraud and the International Stock Exchange, First Edition. Amman: Dar Safa For Printing, Publishing & Distribution.
4. Al- Muhailmi, A. M. (2006). Manaeging the sucsess in stock exchane. Technical Analysis for Stock Exchange, Fifth edition. Private.
5. Al Shukriji, B. T.-D. (2010). Role of the technical analysis in making an investment decision in securities, an analytical study in a sample of Stock Exchanges in the Gulf Countries. Tikrit, Journal of Administrative and Economic Sciences/Volume - 6/Issue - 17.
6. Al Tamimi, A. F. (2010). The Financial markets, regulatory framework and evaluation tools,. Dar Al Yazouri for Publishing and Distribution, Arabic edition.
7. Al Tamimi, A. M. (2005). Technical indicators, Part One. Collected and prepared by Al Tamimi, Abu Moaz, www.sall.com.
8. Al Thunibat, Z. F. (2009). How to trade In stocks, Dar Knoz Al Marifaa of publishing and distribution, first edition.
9. Al-Latif, N. K. (2011). The impact of technical analysis on the decision of investors in the Palestine Stock Exchange. Gaza: Master Thesis Introduction to Accounting and Finance Department, Faculty of Commerce, Islamic University, Gaza.
10. Alnoor A., E. B. (2019). Reverse Logistics on Sustainaable Manufacturing. International Journal of Academic Research in Accounting, Finance and Management Sciences.
11. Al-Shukriji, B. T. (2010). Role of the technical analysis in making an investment decision in securities. Tikret Journal of Administrative and Economic Sciences, Volume 6, Issue 17.
12. Boobalan, C. (2014). Technical Analysis in Selected Stocks of Indian Companies. International Journal of Business and Administration Research Review, Vol.2, Issue.4.
13. C.Boobalan. (2014). Technical Analysis in Selected Stocks of Indian Companies. International Journal of Business and Administration Research Review, Vol.2, Issue.4.
14. Moghaddam, A. G. (2015). Abolfazl Ghadiri Moghaddam & others, The Relationship between EPS and CFO with Return on Shares in Companies Listed in Tehran Stock Exchange, Vol. 5, No. 4, 2015. International Journal of Academic Research in Business and Social Sciences.
15. Murphy, J. J. (2000). Charting made easy. Printed in the United States of America: Published by Marketplace Books ISBN 1-883272-59-9.
16. Taran-Morosan, A. (2011). The Relative Strength Index Revisited, African Journal Of Business Management. International Journal of Academic Research in Business and Social Sciences, pp. 5855-5862.

To cite this article: Alhilfi, M. (2019). Role of using the Relative Strength Index in Making Speculation Decision in Stock Applied Research in the Iraq Stock Exchange, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (1): 123-135.