The Comparison of Return between those Technical Analysis Tools on the Investment of SET 50

Abstract

This study compares the return on investment for the first 50 largest market capital in the Stock Exchange of Thailand or SET50. The investment tools to tracking the return is technical analysis tools, such as; SMA (5,200), MACD(12, 26, 9), SSTO(9), ADX(14), RSI(14) and one fundamental tool for buy and hold strategy is the PE ratio.  This study set an experiments to investigate the return by using all 5 types of technical tools, and the lowest PE, but greater than zero to purchase the stock also call stock selection. Using the data between January 3, 2549 (2006) and December 30, 2559 (2016), the study finds the best tool to find stock is the PE, then SMA(5,200) ADX(14) MACD (12,26, 9) SSTO(9) and RSI(14) with the return(%) of 14.30, 12.03, 11.26, 8.61, 5.67, 4.21 and 2.39, respectively. The result also show that the use of technical analysis tools perform better during upward trend or bull market and in this study the fundamental tool which is the PE Ratio that perform better than other tools.