Farooq, Mohammad Omar and Reza, Md. Hasib,(2014), Dow Jones Islamic Market US Index Applying technical analysis from a comparative perspective. , International Journal of Islamic and Middle Eastern Finance and Management, UNSPECIFIED
Text
Restricted to Repository staff only
Download (879kB)
Restricted to Repository staff only
Download (879kB)
Abstract
Purpose – The purpose of this paper is to apply technical analysis to some leading Islamic indices and
explore if these indices are amenable to the same kind of analysis as applied to conventional indices and
whether technical analysis, in contrast with fundamental analysis, produces distinct or superior return.
Design/methodology/approach – In this paper, some basic tools of TA to Dow Jones Islamic
Market US Index (IMUS) is applied in comparison with the three major market indices: Dow Jones
Industrial Average, S&P 500 Index and NASDAQ 100. For TA, we apply moving averages, MACD and
Stochastics as indicators. The paper is written particularly for those with interest in Islamic finance, but
not necessarily familiar with TA. This paper thus also explores some Shariah-related issues in
effectively applying TA.
Findings – The comparative analysis shows that the performance based on IMUS can be improved,
when TA is applied.
Research limitations/implications – Robust tools of TA play an important role in market
research. This paper probably is the first to apply TA in the context of Islamic finance. Because the
scope of this paper is limited (only Dow Jones Islamic USA Index and comparison with three leading
market indices), more in-depth research is needed and possible, which it is hoped this paper will
encourage.
Practical implications – The successful application of the basic TA tools to Islamic index will
encourage the practitioners of Islamic finance to research and explore further uses and effectiveness of
TA on other Islamic products.
Originality/value – This paper is probably the first application of TA to Islamic finance markets,
written especially for those who take active interest in the financial market from Islamic perspective.
Keywords : | Islamic finance, Buy and Hold, Dow Jones Islamic, Moving averages, Stochastics, Technical analysis, UNSPECIFIED |
---|---|
Journal or Publication Title: | International Journal of Islamic and Middle Eastern Finance and Management |
Volume: | 7 |
Number: | 4 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 27 Dec 2019 04:36 |
Last Modified: | 27 Dec 2019 04:36 |
URI: | https://repofeb.undip.ac.id/id/eprint/1035 |