The Comparative Effectiveness of RSI and MACD Indicators in Managing Stock Price Volatility of Indonesian State-Owned Banks in 2024

Sunarto Sunarto (University of Pamulang)
Irenne Putren (University of Pamulang)
Yunita Kwartarani (University of Pamulang)
Islam Ali Akbar (University of Pamulang)
Siti Aisyah Nurrizqi (University of Pamulang)
Holiawati Holiawati (University of Pamulang)

Indonesian Financial Review
Vol. 5 No. 2 (2025)

This study investigates the effectiveness of the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) in mitigating stock price volatility in Indonesian state-owned banks (BUMN) during 2024. Using a quantitative approach with daily secondary data, panel data regression with a Fixed Effect Model (FEM) was employed, supported by classical assumption tests, t-tests, and F-tests. The findings show that RSI and MACD each have a significant positive effect on stock prices, and together explain 98.45% of price movements. RSI effectively identifies overbought and oversold conditions, signaling potential corrections, while MACD consistently captures trend momentum and reversals. The integration of both indicators provides a more robust analytical framework for anticipating volatility and optimizing investment decisions. This study enriches technical analysis literature by highlighting the complementary roles of RSI and MACD in strengthening decision-making strategies amid market uncertainty in emerging capital markets.