Selection of Stocks Using Technical Analysis

Abstract

The most challenging thing for a stock investment manager facing is taking the right buying and selling decision in the stock selection process. In the stock selection process, the investment manager is competing with a huge number of competitors along with the competing investments with a fixed capital. The goal of this selection process is to distribute all available amount of capital across a waned sunset of the competitors competing investments with the target of making more return. In the field of stock market the investors or traders basically relies two most main frameworks or methods to guide their selection process, those methods are namely Technical analysis and the other is Fundamental Analysis. This project paper is basically focused on Technical analysis along with the use of technical indicators, price charts, chart patterns of Technical Analysis and the implications on a neutral network that supports the process of stock selection of Dhaka Security Exchange Commission. TA method can be considered as the method of using the historical data, statistics, past prices to establish “specific rules for buying and selling securities with the objective of maximizing profits and minimizing risk of loss”.