The effectiveness of technical analysis indicators in foreign exchange market trading (FX)

AN APPLIED STUDY ON THE EXCHANGE RATE OF THE US DOLLAR AGAINST THE IRAQI DINAR FOR THE PERIOD (2010-2020)

A letter submitted to the Board of the College of Administration and Economics / University of Karbala, which is part of Requirements for a Master’s degree in Finance and Banking

From before

Muhanad Rasheed Sharqi Al-Majidi

Supervised byAsst. Prof. Dr. Kamal K. Jawad Al-Shammari

The main objective of the research is to introduce the conceptual framework of technical analysis indicators in the foreign exchange market, or what is known as the forex market, and the trading mechanisms and procedures used in it, and then shed light on some of the methods used by traders to predict the direction of the foreign exchange rates traded. After reviewing the various theoretical aspects related to the foreign exchange market, the research worked on the practical side to try to uncover some technical analysis indicators to predict the exchange rates of foreign currencies in circulation, by studying the indicators and applying them to the exchange rate of the US dollar against the Iraqi dinar for the period 2010-2020, and reached The research indicates results that indicate the effectiveness of technical analysis indicators in the forex market and speculation based on technical analysis indicators that contribute to neutralizing the times of execution of buy and sell orders, and it also gives many signals, the most important of which is warning traders of a reversal of the price trend. The research ended with recommendations, the most important of which is that the trader who wants to maximize his returns and profits and rationalize his investment decisions in the forex market should use technical analysis after he has finished knowing the basics of trading in the currency market, as only technical analysis can give buy or sell signals And directing the investor to increase his knowledge and awareness of technical analysis indicators and the need to diversify the use of technical analysis methods before making an investment decision, but it is accompanied by a full knowledge of the basics of trading in the forex…currency…market.