Using MACD Index in Timing the Investment Decision: A Study in a Sample of Selected Gulf Financial Markets

Abstract The current study aims at using MACD index as one of the major analytical techniques in investment decision timing by investors in the financial markets. So, MACD is considered as one of simplest technical indexes that may draws upon moving averages as well as being much trustier and clear. A sample of four Gulf markets has been selected including the financial indexes of these markets from 1.1.2006 to 30.4.2006. The study hypothesized the following: Stocks prices are habitually moving within certain patterns and trends where could possibly help the investors to specify the investment decisions timing. The use of MACD index lead to the accuracy of investment decisions timing for investors. This study concluded: 1. The sample of most financial markets in the study were moving in certain patterns and trends that would help the investors to select investment decisions timing, this is in agreement with the first hypothesis of the research . 2. Using MACD index, the investors are currently able to time out their investment decisions. That would be in agreement with second hypothesis of the research. .