Investigating effect of important indicators of technical analysis on short term investment of investors in Tehran Stock Exchange

Investment in stock exchange is one of investments to increase investors wealth. There are three various methods for investment of stock exchange: fundamental analysis, technical analysis and Buy & Hold strategy. In this research, effectiveness of using technical analysis in Tehran Stock Exchange researched by focus on several important and applied indicators. Seven valid indicators in two type of technical analysis; trend and oscilators. This research is period of 4 years from beginning of 1380 to ending of 1383 s.br. including of both Bull period (beginning of 1380 to mid of 1382) and Bear period (mid of 1382 to end of 1383) and 62 of best companies aspect of the number of trading days and with considering of trading costs. The results demonstrate that each of technical analysis indicators individually and combination of trend technical analysis indicators compared with Buy & Hold strategy cannot create high and abnormal return for their investors and chartists. But, combination of oscilator technical analysis indicators, specially relative strength index and stochastics, can create high return relative to Buy & Hold strategy significantly.