Technical analysis : an analysis in the Singapore context

Abstract

The bull run has attracted many investors to the stock market. In addition, the recent amendments to the use of Central Provident Funds for investment has fuelled the tremendous growth in trading volume. However, most of these retail investors are unsophisticated and they do not make use of complicated trading strategies in their daily trading. Thus, this research is conducted to determine whether technical trading rules add value to investors' portfolios or the Passive Buy-And-Hold Strategy is superior in generating profits. We identified the parameters that an investor can make use of to generate high returns as well as the best performing indicator.