Fundamental and Chart Analysis

In the case of fundamental analysis, the analyst looks at a company's data - balance date such as income, cash-flow, investment sources, but also marketing funds and much more - in order to come to conclusions on the stock price. The influence of such data upon a company's stock price is indisputable - not least because of this, stock laws include clauses that regulate the documentation of such data so that insiders do not conduct business to the disadvantage of other investors before publication of such facts.

In the case of chart analysis, one assumes that information on future stock prices is contained in the stock trends of the past - a widely confirmed assumption. One must also bear in mind, however, that the representatives of the random-walk-hypothesis argue that all stocks are prone to chaotic development, i.e. without rules. If this is true, chart analysis would as a rule be pointless, be it by analysts, be it with technical aid.

For good reason, we assume that there are correlations between stock prices. Pure chart analysis only uses data provided by the stock market, with the reasoning that any other data such as the political and economic situation is already included in the stock trend. For example: if the American Federal Reserve caps its interest rates, the stock prices normally rise. The news of the interest cut is ignored by the analysts since it has already been taken into account, for instance in the rising Dow Jones Index.

In chart analyses, the analysts observe the stock trends precisely and try to draw from this information how the shares will progress in future - they often only use the share itself as input data. The work of the neural networks transcends this method, since many charts (various stock trends or any further information as well) are already available as input in order to predict the future chart of one single bond.

Strictly speaking therefore, MoneyBee® offers an inter-market analysis. This type of analysis has already become much more important, since the capital markets of the world are increasingly interdependent - as a result of the liberalisation of the market and globalisation. Progress in the fields of telecommunication and in the computer industry, and especially the development of the Internet, have accelerated this process.

MoneyBee® is a chart analysis tool, but not strictly speaking. For our analysis, we can and will also refer to data not directly related to the happenings on the stock market. The results of these studies will be discussed in our forum.

Chart analysis or inter-market analysis (such as MoneyBee®) and fundamental analysis do not contradict each other, instead they complement one other. Any good analyst or investment broker will consider both methods in his decisions and recommendations: the general mood of the market (chart observations) and the fundamental data of a company that he might recommend buying or selling. MoneyBee® is the first system of its kind that provides the end user with such a powerful technical analysis tool. Even the form of measurement is an innovation in itself.