The use of artificial intelligence (AI) in stock markets and forex operations has become increasingly common. The impacts of AI on professional activities are the subject of constant discussions, with various predictions and trends, from those indicating risks of job replacements to others advocating a positive effect with the creation of new occupations.
Use and Changes
However, it is consensus that AI will change some professions as we know them and demand requalification of workers. In the adoption of AI in economic activities, one of the closely related applications is robotics. Although not every machine of this type works with an intelligent system, both technological domains are growing and being employed in an articulated way, especially in assembly lines in the industry.
In Companies
Technology companies have been investing in AI to enhance their services and products. For example, Google acquired DeepMind and is committed to deep learning. The system not only learned to play 49 different Atari games, but AlphaGo was also the first to defeat a professional player in the game. Another innovation from the American company is Google Duplex, which uses natural language processing and a voice interface that can make calls and schedule appointments on behalf of the user.
Amazon's main focus of AI is its digital voice assistant Alexa, but it also operates other fields of its business with the technology. The company created a concept called Amazon Go, which has AI capable of tracking the items the user chooses and automatically charges them through an app. As there is no check-out, the customer can bring their own backpacks to allocate the items, but there are cameras that identify what is selected, so that theft does not become recurrent.
In Stock Markets and Shares
Technical analysis of stocks is a way to predict stock movements using their history through charts. It was popularized by journalist Charles Dow, founder of the Wall Street Journal and who also lends his name to the most traditional stock index in the United States, the Dow Jones. For Dow, an investor who had only public information at his disposal would hardly be able to profit from a stock by trying to price it more efficiently than the entire market.
"Prices discount everything, except divine acts," the journalist said. This means that apart from unforeseeable events such as natural disasters, terrorist attacks, or epidemics, asset prices always reflect all available information at a given time. Thus, the fluctuation in prices would not have so much to do with investors' view on a company's business conduct, but would reflect people's psychological perception of what is expensive or cheap for a stock.
The use of technical analysis of stocks combined with AI can bring several benefits to investors seeking to predict stock movements. An example of a tool that uses AI for technical analysis is the Trade Ideas platform. It uses machine learning algorithms to analyze large data sets and recognize patterns in real-time. This makes it possible to identify trends, chart patterns, and entry and exit points for operations. Moreover, it can generate customized alerts based on user preferences.
However, it is important to highlight that technical analysis of stocks alone is not an exact science and does not guarantee accurate results. It is necessary that the investor also takes into consideration other factors, such as economic and political indicators, to make more informed investment decisions. In addition, the use of AI in technical analysis may present some challenges, such as the need for large amounts of data to train the algorithms, which can be affected by unpredictable events.
