A Dynamic Level Technical Indicator Model for Oil Price Forecasting
DOI:
https://doi.org/10.34257/GJCSTGVOL21IS1PG5Keywords:
technical indicator, commodities, price forecasting, UK oil, MACD, stochastic oscillator
Abstract
Investment in commodities and stock requires a nearly accurate prediction of price to make profit and to prevent losses. Technical indicators are usually employed on the software platforms for commodities and stock for such price prediction and forecasting. However, many of the available and popular technical indicators have proved unprofitable and disappointing to investors, often resulting not only in ordinary losses but in total loss of investment capital. We propose a dynamic level technical indicator model for the forecasting of commodities prices. The proposed model creates dynamic price supports and resistances levels in different time frames of the price chart using a novel algorithm and employs them for price forecasting. In this study, the proposed model was applied to predict the prices of the United Kingdom (UK) Oil. It was compared with the combination of two popular and widely accepted technical indicators, the Moving Average Convergence and Divergence (MACD) and Stochastic Oscillator. The results showed that the proposed dynamic level technical indicator model outperformed MACD and Stochastic Oscillator in terms of profit.
Downloads
- Article PDF
- TEI XML Kaleidoscope (download in zip)* (Beta by AI)
- Lens* NISO JATS XML (Beta by AI)
- HTML Kaleidoscope* (Beta by AI)
- DBK XML Kaleidoscope (download in zip)* (Beta by AI)
- LaTeX pdf Kaleidoscope* (Beta by AI)
- EPUB Kaleidoscope* (Beta by AI)
- MD Kaleidoscope* (Beta by AI)
- FO Kaleidoscope* (Beta by AI)
- BIB Kaleidoscope* (Beta by AI)
- LaTeX Kaleidoscope* (Beta by AI)
How to Cite
Published
2021-01-15
Issue
Section
License
Copyright (c) 2021 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.