Abstract

Technical analysis is a method of evaluating stocks by analyzing statistics generated by market volume, open interest, past prices, and various indicators based on prices and volumes.  Advocates of the weak-form market efficiency hypothesized that investors could not drive profits buy-and-hold strategy using any trading rule that depended solely on past market information such as price or volume, implying that technical trading rules are useless. 

This research evaluates two technical trading method of dual moving average crossover and Parabolic SAR in Malaysia Stock Market (Bursa Malaysia) for three banks over the seven years beginning of 2006 to the end of 2012. Then compare the profitability of each strategy with simple buy-and-hold strategy. The result indicated that for three banks, using of Parabolic SAR earned more than the rest of strategies and could beat the simple buy the share at the first of the period of study and then sell at the end of period.

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