Investment in actions

An approach on technical analysis and its main indicators

Abstract

In this article we have tried to explore the theme Investment in Stocks from a technical analysis perspective, with the objective of discovering how technical analysis can aid in decision making, when it comes to the purchase and sale of shares. For this purpose, a bibliographical research was developed, in which it was possible to achieve the specific objectives of this work, which were to discover the main indicators of the technical analysis and how they are used, and to verify if the technical analysis and its indicators are effective for the decision to buy and sell shares. It was also possible to identify the principles, concepts and types of technical analysis used. It was observed that, among the most used indicators, are the moving average and the crossing of moving averages, MACD, IFR and Stochastic. In order to verify the effectiveness of the technical analysis, we studied academic research about the application of the same in the Brazilian market. It is noticed that among the analyzed studies there is no unanimity regarding the validation of the technical analysis, however, the results that presented positive signs are much more expressive than those that presented negative results. Therefore, it is concluded that technical analysis can be an important tool in the decision to invest in stocks.