Do investment in stock exchange or currencies for the short term as to protect and make grow the capital is based on the anticipation of the prices which are generally established using technical analysis and/or the graphic study of the prices and the indicators of calculation (particularly in the speculative investment on the short term). Nevertheless, the investment in a long term strategy leads to take decisions of purchase and sale of the financial shares while considering the objective or subjective data of macroeconomic and financial order (fundamental analysis).
In consequence, the management of a portfolio of shares listed on the stock exchange and follow its performance with tools (software) to help decision-making which integrate several methods allowed with the choice to the investor (trader or portfolio manager) according to his strategy, his experience, his psychological profile (risk tolerance) and the targeted market(s).
The principal question for trading (daily, weekly or monthly) with shares is how to know market trends from volatility (fast evolution of the prices) and the reversal of trends to seize the available opportunities.
So, when the trading in stock exchange is dominated by the technical analysis, this paper proposes a simple method which allows understanding the gaps and reversals situation of the prices.
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