Market Lineal Charts

The lineal charts are elaborated from two axis of coordinates the quotations are noted in the ordinates and the period in the abscissa, the period might refer to days weeks or even months logically for the short-term an analysis short periods as are days would be more interesting to analyze however the long term investors might think more useful to analyze tendencies that are based in weeks or even months.

The short term investors that use these type of graphics usually buy when a rise superior to 3% of the quotation is produced (sometimes, the percentage used 15 of 5% or 8%) and the quotation are produced.

This way of operating is denominated as “filter system” it is based in the supposition that if a security has registered a rise if will keep on rising on the next sessions and vice versa, so by following this supposition you would have to purchase securities that are on rise and to sell securities whose quotations are going downwards the methods that follow this system are those of Sidney and of hatch the Sidney method consists in buying a security when a rise of a 5% has been registered in a session and to sell the security when it falls in 5% in another session whit this way of operating the American analyst Sydney obtained important earnings on the market the hatch method consists in forming a portfolio of securities of a s solid base after elaborating an index with these securities you purchase them when the index rises in a 10% once all the securities are bought you keep on controlling the index through the means of a chart and you sell when the index falls in a 10% once you have sold the securities you keeps on controlling the index and when it rises again in a 10% you again purchase all the securities so, according to this method you only make decisions to buy or sell when there are falls or rises of a 10%.