Mathematical Analysis Method for Stock Market Using MA and KDJ Indicator

Abstract

With the rapid development of Economic Globalization as well as international trade and capital transaction, stock market take a more and more important position in the finance analysis.

In this thesis, I combined the MA the KDJ, MA for long term trend analysis and KDJ for short term analysis. First I introduced MA and KDJ separately, their strength and weakness. Then I try to put them together, adjust the parameters to make them suitable for Shanghai Stock Exchange Composite Index.

Then I use my model to simulate transaction in real world, estimate the rate of return and comparing with the stocks’ holding rate and inflation rate. The result is pleasant. At last, I give a conclusion and a further advice to this model.