TITLE:
The Impact of Technical Analysis on Investors’ Financial Decisions in an Emerging Market: Evidence from the Egyptian Stock Market
AUTHORS:
Arafa Magui, Elsayed Elsiefy, Mohamed Bahaa
KEYWORDS:
Technical Indicators, Investor’s Financial Decisions, Investors Types, Egyptian Stock Market
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.13 No.10,
October
31,
2023
ABSTRACT: This paper aims to examine the impact of technical
indicators on the behaviors of investors in the Egyptian stock market from
2019-2022. Technical indicators are widely used to understand and predict
market trends and behaviors. The study evaluates how technical indicators shape
the investment decisions of individual investors and institutional investors.
The study adopts a research design, using quantitative data analysis
approaches. The quantitative part of the research uses descriptive,
correlation, and regression statistics to analyze the stock market data
retrieved from the Egyptian Stock market database. Meanwhile, the study found
that technical indicators have a significant impact on investor behaviors, with
institutional investors relying more on technical indicators than individual
investors. Moreover, the findings reveal that there are additional factors,
such as market sentiment, political climate, and the economic environment, that
also impact investment decisions. As such, the paper concludes that technical
indicators should only be used as one of many factors in determining investment
strategies, in conjunction with broader macroeconomic and market conditions.