Decision making in the indonesian stock exchange using a fuzzy logic method

Zuherman Rustam, Aini Suri Talita, Lintang A.M. Pertiwi

Research output: Contribution to journalArticle

Abstract

Defining the best strategy to trade stocks is difficult, especially on the Indonesian stock exchange. A small mistake can lead to a huge loss. Investors analyze stock behavior of targeted companies to make decisions to buy, sell, and hold. Various technical analysis methods use a combination of chart indicators to make these decisions. This study proposes combining four existing indicators with fuzzy logic to create a method for predicting the appropriate action for a stock. This method will use the Moving Average Convergence/Divergence (MACD), the Relative Strength Index (RSI), the Stochastic Oscillator (SO), and the On-Balance Volume (OBV) indicators to recommend a buy, sell or hold decision to an investor. This experiment used two Indonesian companies to test the accuracy of the algorithm. Based on 2014 data, using the fuzzy logic method, accuracy of the algorithm reached 66.67% and 75% for the two companies.

Original languageEnglish
Pages (from-to)3937-3946
Number of pages10
JournalJournal of Theoretical and Applied Information Technology
Volume97
Issue number14
Publication statusPublished - 1 Jun 2019

Keywords

  • Fuzzy Logic
  • Moving Average Convergence/Divergence
  • Relative Strength Index
  • Stochastic Oscillator
  • Stock

Fingerprint Dive into the research topics of 'Decision making in the indonesian stock exchange using a fuzzy logic method'. Together they form a unique fingerprint.

  • Cite this