TECHNICAL ANALYSIS AND STOCK MARKET IN BOSNIA AND HERZEGOVINA

Original scientific paper
Autor: Dragan Jović PhD

Summary: On the financial market of Bosnia and Herzegovina tools of technical analysis can predict the movement of stocks prices. All modalities of technical analysis which have been used in this paper, except for the money flow index and momentum, have their usability value: candlesticks, Fibonacci numbers, technical indicators, Boolinger Bands, and trend line. The use of particular instruments of technical analysis is related to the specific market situation and the kind of the trend. Predictive power of technical analysis rises with the combined use of its instruments, as well as with its adaptation to the trend’s characteristics. Usefulness of the technical analysis methods in predicting crucial events in the movement of stock prices is the function of its flexible, adaptable and joint implementation.

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