Technical analysis of three stock oscillators testing MACD, RSI and KDJ rules in SH & SZ stock markets

This article designs models and uses computer technology to examine three oscillators in stock market: the Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI) and the Stochastic Oscillator (KDJ). Based on the 8-year data of Shanghai (SH) Stock Index and Shenzhen (SZ) Stock Index, a buying and selling stock model is built by satisfying all of the three oscillators above and the increasing and decreasing rate is calculated by assigning different time period from 3 days to a month. The result shows that the combination of the three oscillators can have a relatively higher possibility to predict the short term stock changes. Furthermore, it also proves that different periods of markets have less influence on the efficiency of the oscillators.