Forecasting system approach for stock trading with relative strength index and moving average indicator

Stock is one of the investment instruments on the capital markets which provide high returns. Furthermore, Indonesian government also supports to raise awareness on investing in stock market through the national movement “to love stock market”. Apart from that, a lot of people want to invest their money in stocks hoping to get a big return in instant, however many of them suffered losses, and the intention to gain their money is not achieved. Lack of knowledge such as “high return means high risk”, is often forgotten by community. Therefore in order to increase the interest of the community to develop their money in stocks, ability to analyze on stock transactions is deeply needed. This can be achieved by using indicators as tools for analyzing the stock transaction. Departing from the elaborated issue, this research is expected to help the community in analyzing the stock, to know when the time to buy and when the time to sell. This forecasting system will provide an advice to stock investors and stock traders to pay attention to indicators: relative strength index and moving average. In conclusion the result of this research can help the investor to determine the right time to buy and sell. However, this system cannot predict very exact time and cannot became a standard for profitability, because the volatility of stock price.