Advantages of Using Technical Analysis to Predict Future Prices on the Amman Stock Exchange


  •  Jumah Abbad    
  •  Bashar Fardousi    
  •  Muneer Abbad    

Abstract

Many studies have examined the benefits of conducting technical analysis on the stock market, with mixedresults. With a view to clarifying the usefulness of technical analysis, this paper examines the capacity oftechnical analysis rules to predict future prices on the Amman Stock Exchange. As data for this research, asample of closing prices for the general index on the Amman Stock Exchange was used. Our results show thattechnical analysis does have the power to predict the movement of the stock price, and to generate profitablebuy and sell signals.


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