The importance of technical analysis in making investment decisions (Case study of a country).

Moustafa Soliman

Master's thesis

Abstract:

The thesis focuses on Forex trading and is divided into theoretical and practical parts. In the theoretical part, the origins of the Forex market, currency naming conventions, efficient market hypothesis, currency exchange rates, and margin trading are discussed. Additionally, fundamental and technical analyses are compared, and different technical trading theories are explored, including Dow theory, Elliott waves, moving averages, and indicators such as RSI and MACD. Different types of charts, including Japanese candlestick forms, are also covered. The practical part of the thesis involves measuring the effectiveness of MACD and RSI indicators on different currency pairs and evaluating whether their signals will be reflected in upcoming price trends, taking support and resistance levels into account. Furthermore, the knowledge and experience of technical analysis among Investors in the UAE markets and its impact on their investment decisions were evaluated through a questionnaire consisting of 25 questions. The thesis, in summary, provides valuable insights into the Forex market and technical analysis, making it a useful resource for anyone interested in Forex trading or financial markets.

Keywords

Forex trading, Efficient market hypothesis, Technical analysis, Currency pairs, Japanese candlesticks, Indicators (MACD and RSI), Supply and Demand Levels, UAE Investors in the forex market

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 31. 3. 2023

Obhajoba závěrečné práce

• Obhajoba proběhla 30. 5. 2023
• Vedúci: doc. Ing. Lubomír Civín, CSc. MBA
• Oponent: Tomáš Šídlo, MUDr., externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Business Administration