Analysis of the parameters used in technical analysis indicators: A research on the determination of better results in the Turkish Stock Exchange

Analysis methods in financial markets are classified as fundamental analysis and technical analysis. Fundamental analysis reveals the financial soundness of a company and the value of the stock, while technical analysis gives ideas about the timing of buying and selling. Although there are many tools used in technical analysis, it is the most preferred indicator analysis because it is practical and visual. Indicators are created as a result of mathematical processing of data such as price and volume in a certain period. Since the dynamics of financial markets are different from each other, the values determined by the developer of the indicator do not work in the same efficiency in every market. For this reason, the main purpose of the study is to determine the parameters of the generally accepted indicators that work best in the Turkish capital market. For this purpose, the 5-year closing price data of 27 companies in the BIST 30 index between the years 2018-2023 were optimized using the Matrix Data Terminal System Tester. As a result of the study, the returns obtained by using standard parameters were compared with the returns obtained as a result of optimization. It has been determined that the new parameter returns determined are much higher. In addition, a new parameter has been determined for each share separately. It has been concluded that the returns obtained in the case of using the new parameters determined for the stocks are quite good considering the period covered by the study.