Efficiency of technical indicators in share valuation: A study on Borsa İstanbul

Capital markets become the focus of attention in our country in certain periods. Some of the most important reasons for this are the loss of attractiveness of deposit interest in the face of inflation, the demand for cheaper stocks in foreign currency and the desire of the society to financially secure themselves in the future. The increasing ease of access to information in the globalizing world requires investors to take correct and fast decisions. Fundamental Analysis, which is the first of the stock valuation methods preferred by investors at the point of decision-making, is the type of analysis in which the value of the stock is tried to be determined. Technical analysis, on the other hand, is the type of analysis in which future prices are tried to be determined by using past price data. The main purpose of the research is to investigate whether a return will be obtained above the buy and hold strategy, which is the general benchmark, with the help of technical indicators. Between 01.01.2010 and 31.12.2020, 34 different retrospective tests with 11 different types of indicators and their results in 4 different categories were examined. When the performances of the indicators are examined, when there is no clear superiority over the buy and hold strategies in terms of return performance, but when the indicators that adapt more easily to the tests are preferred, the indicator-based strategies are better in performance than the buy and hold strategy with low commission rates, hourly or 4-hour charts, and not very long maturities. It is understood from the results of the retrospective tests that it offers high and preferable returns.