ISSN: 2225-8329
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.
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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.
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