Energy crypto currencies and leading U.S. energy stock prices: are Fibonacci retracements profitable?

Simple item page
dc.contributor.authorGurrib, Ikhlaas
dc.contributor.authorNourani, Mohammad
dc.contributor.authorBhaskaran, Rajesh Kumar
dc.date.accessioned2022-02-03T14:42:37Z
dc.date.available2022-02-03T14:42:37Z
dc.date.copyright© 2022
dc.date.issued2022-12
dc.description.abstractThis paper investigates the role of Fibonacci retracements levels, a popular technical analysis indicator, in predicting stock prices of leading U.S. energy companies and energy cryptocurrencies. The study methodology focuses on applying Fibonacci retracements as a system compared with the buy-and-hold strategy. Daily crypto and stock prices were obtained from the Standard & Poor's composite 1500 energy index and CoinMarketCap between November 2017 and January 2020. This study also examined if the combined Fibonacci retracements and the price crossover strategy result in a higher return per unit of risk. Our findings revealed that Fibonacci retracement captures energy stock price changes better than cryptos. Furthermore, most price violations were frequent during price falls compared to price increases, supporting that the Fibonacci instrument does not capture price movements during up and downtrends, respectively. Also, fewer consecutive retracement breaks were observed when the price violations were examined 3 days before the current break. Furthermore, the Fibonacci-based strategy resulted in higher returns relative to the naïve buy-and-hold model. Finally, complementing Fibonacci with the price cross strategy did not improve the results and led to fewer or no trades for some constituents. This study’s overall findings elucidate that, despite significant drops in oil prices, speculators (traders) can implement profitable strategies when using technical analysis indicators, like the Fibonacci retracement tool, with or without price crossover rules. © 2022, The Author(s).en_US
dc.identifier.citationGurrib, I., Nourani, M., & Bhaskaran, R. K. (2022). Energy crypto currencies and leading U.S. energy stock prices: Are fibonacci retracements profitable? Financial Innovation, 8(1) https://doi.org/10.1186/s40854-021-00311-8en_US
dc.identifier.issn21994730
dc.identifier.urihttps://doi.org/10.1186/s40854-021-00311-8
dc.identifier.urihttp://hdl.handle.net/20.500.12519/504
dc.language.isoenen_US
dc.publisherSpringer Science and Business Media Deutschland GmbHen_US
dc.relationAuthors Affiliations : Gurrib, I., Faculty of Management, Canadian University Dubai, 1st Interchange, Sheikh Zayed Road, P.O. Box 117781, Dubai, United Arab Emirates; Nourani, M., The University of Waikato Joint Institute at Zhejiang University City College, University of Waikato, Hangzhou, China; Bhaskaran, R.K., Department of Finance, Institute of Management Technology, UG 02, Dubai International Academic City, Dubai, United Arab Emirates
dc.rightsCreative Commons Attribution 4.0 International License
dc.rights.holderCopyright : © 2022, The Author(s).
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subjectEnergy cryptosen_US
dc.subjectEnergy stocksen_US
dc.subjectFibonacci retracementsen_US
dc.subjectPerformance evaluationen_US
dc.titleEnergy crypto currencies and leading U.S. energy stock prices: are Fibonacci retracements profitable?en_US
dc.typeArticleen_US

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Access Instruction
Size:
1.95 MB
Format:
Adobe Portable Document Format
Description:
Download

Collections

Accounting & Finance