TITLE:
An Early Warning Model with Technical Indicators: The Case of Ise (Istanbul Stock Exchange)
AUTHORS:
Kutluk Kagan Sumer
KEYWORDS:
Stock Exchange; ISE; Technical Analysis; Technical Indicators; Early Warning; Ordered Choice
JOURNAL NAME:
iBusiness,
Vol.5 No.4,
December
27,
2013
ABSTRACT: In this study, the technical indicators are used in
forecasting whether stock prices will rise, fall or will be constant at the
following day. The indicators are generated by taking into account the daily
stock returns. If the daily stock returns are positive, the indicator is coded as “+1”; if the daily stock returns are
constant, the indicator is
coded as “0” and at least if the daily stock returns are negative, the indicator is coded as “-1”. These indicator values express the
dependent variable of ordered choice models which independent variables are
technical indicators. The ordered choice models are applied to all of the
stocks of ISE (Istanbul Stock Exchange).