HE chart analysis It is one of the commonly used investors inside bag as a fundamental tool for understanding price fluctuations in a market. The aim is to analyze the charts created to understand the historical price fluctuations of an asset. financial instrumentwith the aim of obtaining more reliable predictions and improving the behavior of quotes in the future.
The development of artificial intelligence is introduced tools that tend to automate decision making It is unknown what consequences it may have for stock markets in the future. The idea is that trends in general may become sharper, but any evolution may in any case be altered by new external elements. An example of this was the price of Grifols at the beginning of 2024. After rising more than 40% in 2023, information on its accounts invalidated previous predictions, new elements emerged and its price fell. Any chart analysis becomes obsolete when confronted with fundamental information from the company’s accounts or the macroeconomic environment.
Tips for investing in the stock market From the chartist’s point of view (without having privileged knowledge), they start from the basics. Various rules, the violation of which means a clear risk of loss. There are four basic principles of investing in the stock market:
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Always go with the trends.
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Set limits for unexpected crashes
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Stop earning the last expected increase (sell at a profit)
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Manage the portfolio on an ongoing basis by assuming losses and consolidating profits.
In the coming days, this information will be expanded with basic terms used in stock market transactions with approximately a daily update…
Dow Theory
Charles Henry Dow (1851-1902) was a pioneer of technical analysisAt the end of the 19th century. He wrote numerous articles explaining price movements and trends in ‘The Wall Street Journal’. All of his ideas are understood as the Dow theory. According to them, prices take into account all the elements that add value to an asset and discount everything. Prices develop in the form of trends. And movements tend to repeat themselves over time.
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