Evaluation of the Profitability of Technical Analysis for Asian Currencies in the Forex Spot Market for Short-Term Trading

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Maliheh Rezaei Adariani

Abstract

Technical analysis has garnered an unprecedented amount of interest among short-term traders in the Forex spot market over the past couple of decades. The main purpose of this study is to examine the profitability of technical analysis as applied to three active Asian currencies in the Forex spot market for short-term trading. This study also tests the relationship between various related parameters of currency trading such as Maximum Drawdown, Time in Position, Dealt Lots, Trading Charges and profitability. It covers ten currency pairs, including ten foreign exchange rates of three active Asian currencies in the Forex spot market (the Japanese Yen, Singaporean dollar, and Hong Kong dollar), five time frames involving Intra-day timeframes, and ten technical indicators (5 leading and 5 lagging). The study covers a period of three months running from April 10, 2012 through July 10, 2012. The results indicate that technical analysis is profitable for Asian currencies as attested by the fact that all the currency pairs, time frames and indicators have yielded trading profits in the Forex spot market.

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How to Cite
Adariani, M. R. (2014). Evaluation of the Profitability of Technical Analysis for Asian Currencies in the Forex Spot Market for Short-Term Trading. AU-GSB E-JOURNAL, 5(2). Retrieved from http://www.assumptionjournal.au.edu/index.php/AU-GSB/article/view/469
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Author Biography

Maliheh Rezaei Adariani

Maliheh Rezaei Adariani recently graduated from Assumption University, Graduate School of Business. This research was completed under the supervision of Dr. Aaron Loh.