Studi Ekonomi dan Kebijakan Publik
Vol 4 No 2 (2026): Januari

The Effectiveness of RSI and MACD in Determining Buy and Sell Signals

Nurhikma Nurhikma (Universitas Muhammadiyah Makassar, Makassar, Indonesia)
Wa Ode Rayyani (Universitas Muhammadiyah Makassar, Makassar, Indonesia)



Article Info

Publish Date
18 Jan 2026

Abstract

Purpose: This study analyzes the effectiveness of Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) in generating buy and sell signals for five mining stocks on the Indonesia Stock Exchange.Methodology: This research uses a quantitative descriptive and verificative approach with secondary data consisting of daily historical prices and RSI, MACD, Signal Line, and Histogram values from the Indonesia Stock Exchange and TradingView. Results: Both RSI and MACD detected price reversal points, with differing accuracy and timing across the five stocks. RSI produced more frequent, earlier signals identifying overbought and oversold conditions, while MACD produced fewer but more reliable signals confirming medium term trend changes during periods of strong momentum.Conclusions: MACD is relatively more effective than RSI for determining buy and sell signals on mining stocks, generating more consistent signals during trending markets, while RSI performs better as a complementary indicator confirming overbought or oversold conditions before entry or exit. Limitations: This study is limited to five mining stocks and one period, relying only on RSI and MACD without other indicators, so findings may not generalize.Contributions: These findings offer practical insight for investors selecting technical indicators for entry and exit timing in the Indonesian mining sector, and an empirical basis for research combining technical and fundamental analysis.

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Journal Info

Abbrev

sekp

Publisher

Subject

Economics, Econometrics & Finance Education Social Sciences

Description

Studi Ekonomi dan Kebijakan Publik adalah jurnal ilmiah yang mempublikasikan artikel ilmiah yang mengangkat topik ekonomi dan kebijakan publik serta topik-topik terkait. Naskah yang dikirimkan ke Studi Ekonomi dan Kebijakan Publik akan direview dengan metode double-blind peer review oleh mitra ...