A Study on Analysis of Short-Term Trading Strategy

This study focuses on analysing the effectiveness of the Moving Average Convergence Divergence strategy in short-term trading within the stock market. MACD is a widely used technical indicator that helps traders identify potential buy and sell signals based on momentum and trend changed. The research is based on the analysis of historical price data of selected stocks, where MACD signals such as bullish and bearish crossovers are evaluated over short timeframes. The study measures the performance of the strategy using key parameters like accuracy of signals, profitability, and occurrence of false signals under different market conditions. The findings reveal that MACD performs effectively in trending markets by capturing short-term price movements. However, its lagging nature often leads to delayed signals and reduced performance in volatile and sideways markets. The study concludes that while MACD is a useful tool for short-term trading, it should be combined with other technical indicators and proper risk management techniques to improve trading efficiency and decision-making.