Chartist figures: how to trade on the stock market?

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Una de las estrategias para operar en los mercados de renta variable se materializa mediante los denominados gráficos de cifras. Pueden darle alguna que otra señal de especial importancia para acceder y salir de los mercados financieros. Sea cual sea el caso, es un sistema reservado para un perfil de inversores muy especial. ¿Cómo son los que brindan un additional learning in this class of operations. Above other technical considerations that publicly traded securities may offer.

No puede olvidar de ahora en más que el análisis de gráficos es la parte del análisis técnico que estudia los movimientos de precios. Tal es su relevance hoy en día que estas cifras son las que forman los precios y que hacen que esta strategy de inversión se denomine chartismo. Pero ahora, cada figura tiene un different connotations and they serve to warn if you are facing an upward trend or if, on the contrary, it is downward. This is one of the keys to interpreting this kind of stock market figures.

On the other hand, the figures in the charts are also very important to establish whether the dominant trend is going to continue or there may be a change in it. Investors with more experience in financial markets look to this parameter to open or close positions in equity markets. With a very detailed analysis of this analysis you can configure the success of your operations. Above other strategies that are considered more vulnerable or, at least, unreliable in their diagnosis.

Chartist figures: with many triangles

The triangles of this class of stock market figures is one of the best sources of information for carrying out operations on the stock market. It is one of the best sources to detect if a security is in an uptrend or if, on the contrary, it is bearish. One of the most accurate triangles is called as ascending. But what does this type of technical analysis consist of? Well, it is simply made up of a horizontal resistance line and a bullish pattern. Its reliability is quite high and it can be applied without difficulty since it is quite easy to detect it with some ease.

On the other hand, another of the most relevant triangles in technical analysis is the opposite. In other words, the descending one. In which a horizontal line is formed that in this case works as a support and with a bearish guideline. In general, this type of figure tends to go down, which means that a lot of precautions must be taken when receiving this figure. Especially if this support is knocked down with some slack. For this purpose, it is very equivalent to the classical media in the configuration of its prices.

Expansive triangles

A third triangle is the expansive one and its name already indicates a very favorable figure for the interests of small and medium investors. It should be noted that this very special and at the same time complex figure of technical analysis usually arises within downtrends. Como podíamos esperar, lo que llegan a indicar es un incremento significativo de la volatilidad. Dicho de otra forma, una diferencia sustancial entre los precios máximo y mínimo de los valores analizados. A diferencia de las otras figuras, luego de todo, no ofrece ningún target specific.

The biggest problem with this number in the stock markets is that cannot be translated into a specific operation. Any incident can occur or what is the same, mark an upward, downward or even lateral trend. In a way, it should go unnoticed because it does not give any reliable signal about what to do at all times. To the point that very few investors pay attention to it, mainly those with more experience in the equity markets.

What are wedges?

Even though I miss you a little by now the wedges are other triangular training. Because in effect, they coincide with the previous models in that they are triangular figures. But in this case, presenting the same address. With a double interpretation given that the rising wedge provides clear bearish connotations. While, on the contrary, the falling wedge has bullish implications. As a result of these interpretations, they are movements that can be used to buy or trade the shares, respectively. With a high reliability in its resolution.

On the other hand, the main problem with these special wedges, both in their ascending and descending variants, is that they are not more difficult to detect. After all, it is necessary to provide a high level of learning in this class of figures within chartism or technical analysis. But solved this problem, they can give you more than one joy from now on. Among other reasons because you will be in a better position to make your savings profitable from now on.

Recoil and recoil

There is no doubt that we are facing two of the movements most used by investors to carry out their operations in the equity markets. Even though it is also true that they are often confused with special frequencies. For this reason, it is fundamentally important to differentiate them correctly. Well, the so-called recoil is a movement backwards after a dissolve. In other words, it initiates a very punctual correction procedure after having developed a significant rise in its prices. To stop very close to resistance.

In general, it has very strong bullish overtones, so it should be used to take positions in a more aggressive way. Not surprisingly, it has upside potential that is well worth considering. To the extent that the most immediate reaction is a very violent escape on the upside. First, to recover its previous prices and with a little luck and a high volume of contracts, more ambitious goals can be reached to the delight of small and medium investors who have decided to take positions at the beginning of this stock market movement. .

Backspace: it's the opposite

On the other hand, the backtrack indicates the opposite of the previous figure. In other words, it has very strong bearish overtones. This is especially due to the fact that in the stock market technical analysis it refers to the movements of return or retreat in the price (up or down) towards a previous movement of break of supports, resistance, significant trends or graphical or chart formations that have been previously completed. In this way, they are possibilities to buy or trade securities, depending on the breakdown of a trading level or a bullish or bearish technical training.

Whatever the case, one of the keys to maintaining or achieving success in operations is based on knowing how to separate both movements, which is not always extremely easy to verify. If you are not very clear about this technical analysis procedure, it would be better to refrain from making decisions about the values you want. buy or trade henceforth. Not surprisingly, you can fall into the odd mistake that will pay dearly, as has happened with several of the investors with less experience in the equity markets.

On the contrary, do not forget that a pullback does not always occur when a trend line is broken. Far from it even if investors think so. Since another additional signal is required to confirm the strength of the new trend that has just started at that time. This is the main reason why it should be supported by an answer that comes from other parameters of the stock market. Because after all, if only this figure of technical analysis is presented, you must show some caution about your intentions.

When these figures break

Another aspect that you should assess in the correct analysis of these stock market figures is that which has to do with the fact that in any type of figure of the graphic analysis (triangles, rectangles, shoulder-head-shoulder, among some of the most relevant) it may kick back when this figure is broken. Then, its complexity is increasing sensibly, as you can see with these explanations that we are giving you. To the extent that it can be said that the decline is ultimately constituted as a confirmation of the validity of the movement. Beyond other considerations, both from a technical point of view and from its arguments.

Mientras que otra parte, además es muy conveniente que tengas en cuenta de ahora en más que estas cifras no son infalibles. Dicho de otra forma, pueden ser movimientos falsos que te pueden llevar a una operación totalmente equivocada y este es el mayor peligro que tienes si usas estos parámetros en la información para operar en los mercados de renta variable. Debido a que no hay duda de que vas a poder dejar muchos euros de camino si tus acciones no son las correctas. Es el gran riesgo de usar estas figuras del que hemos hablado en este post.