The technology of Investtech’s chart analyses

The chart analyses identify important patterns in the price chart and volume which can describe the psychological fluctuations experienced by the investors. The patterns signal what the investors will do next, and the stock is assigned a technical evaluation. The analyses are entirely automatic and updated every day by Investtech’s systems.

From price graph to recommendations via advanced mathematical computer programmes

• Various technical indicators are identified in the graph and drawn in the chart
• The most important indicators are discussed in a technical commentary
• Each of the technical indicators, and a combination thereof, are used to calculate a technical score
• Ranking of stocks by score produces ranked lists of buy candidates

Investtech’s systems assess many technical indicators. The most important are:

Trend

Rising trends indicate that the company experiences positive developments and increasing buy interest among investors. Falling trends indicate that the company experiences negative developments and reduced buy interest among investors.

Support and resistance

Support is the price level where investors have previously seen the stock turn and start to rise again. Many investors think the stock is cheap at this level and may want to buy again. Similarly, resistance is where the stock has turned downwards before, where the investors think is is expensive.

Price formations

Specific price formations indicate that the investors have been through specific psychological fluctuations. When the patterns are broken, it may indicate what the majority of investors are thinking and thereby where the price is going. Buy and sell signals from these patterns provide the opportunity to trade before the majority.

Volume

Volume analysis indicates the strength of price movements and whether buyers or sellers are the active parties. Only rarely do we see buy and sell signals from volume alone. However, information from trends, support and resistance and price patterns is significantly weakened without confirmation from volume analysis.