It is a method for stock market analysis, designed to facilitate decision making. Unlike the fundamental analysis, it does not take into account the internal data of the companies, or the general macroeconomic indicators, but is based on the historical series of prices of the analyzed asset. The basic tool for this analysis is the chart or graph (also called ‘chartist analysis’), which represents the past evolution of prices; On it, figures are drawn with which an attempt is made to identify a pattern of past behavior, in order to be able to predict the future evolution of prices. Consequently, the decision to buy or sell a certain security will be adopted. His interpretation undoubtedly incorporates important doses of subjectivity.
Origin: CNMV
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