The Effectiveness of Spread-Based Investments Strategies in the Tehran Stock Exchange: Content Analysis of Harmonic Oscillators and Wavelengths

Technological analysis is one of the methods of market analysis in which stock prices and stock volumes are used to predict future price movements. Oversight is a function of the price and volume of transactions that often fluctuate between two values, and in The case of buying and selling an asset is issued by signals. Time-based oscillators model the behavior of the price using the concept of wave and periodicity. The present study aims to evaluate the profitability of two oscillators based on time rotation, including simple harmonic oscillator and wave frequency oscillator in Tehran Stock Exchange between 2009 and 2018. The result of the study shows that the two trading strategies are nearly equal in terms of the Sharp ratio, and both are nearly four times as efficient as the Sharp market. Also, the wave-wave oscillator-based strategy has higher efficiency and variance than the simple harmonic oscillator-based strategy and therefore has a more risky situation.