Technical analysis using the relative strength index and its impact on the investment decision


  • Nour Fadel Hussein
  • P. Dr. Hisham Talaat Abdel Hakim



technical analysis, investment decision, relative strength index.


The current study aims to highlight the role and impact of technical analysis as one of the most important scientific analysis methods adopted in the financial markets to help investors in these markets make their rational investment decisions in the securities traded in them, foremost of which are common stocks. By using and benefiting from the most important tools and indicators provided by the technical analysis method. This study was conducted on a sample of the shares of (3) companies that are traded on the Iraqi Stock Exchange and from various investment sectors for a period of time of (10) months extending from (7-7-2020) to (25-5-2021). The (relative strength) indicator was used to prove the impact of technical analysis indicators on the investment decision. The results of the study demonstrated the possibility of benefiting from the technical analysis indicator in determining the appropriate timing for making a rational investment decision (buying or selling) in the shares of the surveyed companies. The investment by buying or selling the index, which enhances its impact and active role in enabling investors to choose the appropriate timing to invest in the shares of companies traded in the Iraq Stock Exchange (ISE-60).





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