Technical analysis review using fuzzy logic method in investment instruments

This study aims to examine the integration of technical analysis methods with the Fuzzy Logic Method to enhance the effectiveness of investment decision-making in financial markets. By offering a framework to mitigate uncertainties and risks in financial markets, this research seeks to contribute to the decision-making processes of investors both theoretically and practically. The study focuses on the analysis of stocks included in the Borsa Istanbul (BIST50) index, utilizing price movements and technical analysis indicators from the 2015–2024 period. In the research, technical analysis, which evaluates the historical price movements of stocks, is combined with the flexible and interpretation-based analytical approach of Fuzzy Logic. Technical indicators such as Moving Averages (MA), Relative Strength Index (RSI), Bollinger Bands, Stochastic RSI, and Commodity Channel Index (CCI) were utilized. These indicators were evaluated using membership functions and fuzzy rules to identify stock trends and turning points in price movements. The findings reveal that the integration of Fuzzy Logic with technical analysis improves the accuracy of investment decisions and provides a new perspective on risk-return analyses. This research not only addresses a gap in the literature regarding financial analysis methods but also offers a practical guide for investors to make more informed decisions on a sectoral level.