Journal of Management Research and Analysis

Print ISSN: 2394-2762

Online ISSN: 2394-2770

CODEN : JMRABX

Journal of Management Research and Analysis (JMRA) open access, peer-reviewed quarterly journal publishing since 2014 and is published under auspices of the Innovative Education and Scientific Research Foundation (IESRF), aim to uplift researchers, scholars, academicians, and professionals in all academic and scientific disciplines. IESRF is dedicated to the transfer of technology and research by publishing scientific journals, research content, providing professional’s membership, and conducting conferences, seminars, and award programs. With more...

Article type

Original Article


Article page

159-169


Authors Details

Ashok Kumar Panigrahi*, Kushal Vachhani, Suman Kalyan Chaudhury


Article Metrics


View Article As

 


Downlaod Files

   






Article statistics

Viewed: 702

PDF Downloaded: 1204


Trend identification with the relative strength index (RSI) technical indicator –A conceptual study


Original Article

Author Details : Ashok Kumar Panigrahi*, Kushal Vachhani, Suman Kalyan Chaudhury

Volume : 8, Issue : 4, Year : 2021

Article Page : 159-169

https://doi.org/10.18231/j.jmra.2021.033



Suggest article by email

Get Permission

Abstract

We all must agree that the word "trend" is now the buzzword of the stock market. As a part of investment strategy and analysis, it is always suggested that the investors should keep an eye on medium-term and short-term changes in addition to longer-term (secular) patterns. Traders and investors use the RSI as a momentum indicator. Overbought and oversold situations are indicated by RSI values between 70 and 30. Over the past two decades, several techniques have been developed to analyze NIFTY 50 data for investment purposes. In this paper, we have estimated the returns by looking at the two trends i.e., 50-50 and 60-40. In addition to this, how to trade and back-test our strategy is also explained. Applying these two RSI strategies to the NIFTY 50 chart revealed that 50-50 offers a higher long-term return, while 60-40 provides a superior short-term return. Finally, the strategies' returns F-statistics and P-values were calculated and analyzed to determine their significance level and acceptability.


Keywords: Trading Strategy, RSI, Technical Indicator, Momentum Trading, Technical Analysis


How to cite : Panigrahi A K, Vachhani K, Chaudhury S K, Trend identification with the relative strength index (RSI) technical indicator –A conceptual study. J Manag Res Anal 2021;8(4):159-169

This is an Open Access (OA) journal, and articles are distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 License, which allows others to remix, tweak, and build upon the work non-commercially, as long as appropriate credit is given and the new creations are licensed under the identical terms.