RSI and MACD indicators integrated: evidence from S&P 500 and Li-Ning as an example

Abstract

The price of the securities market is complex and fluctuating, which is undesirable for investors to blindly follow the main force when investing in the stock market. In this case, it is necessary to develop the own set of strategies to choose suitable investments. This paper first briefly introduces the principles of RSI and MACD indicators, then analyzes the impact of each indicator on stock price trend prediction based on cases analysis. To be specific, their advantages and disadvantages are summarized. Afterwards, the two indicators and analysis of their optimization utility are combined with cases to draw conclusions to argue the value of technical indicators in stock trading. Overall, these results shed light on guiding further exploration of technical indicators in the stock as a guide to practical operation.