Analysis of non-linear structures in IMKB (ISE)

The interest in security markets has gradually become widespread in the countries of the world and this has led the increase in the studies performed with respect to these markets. Especially the investors in the stock market have aimed to estimate the price movements of stocks and to obtain over-normal returns, all along.Many scientific and non-scientific methods have been suggested to analyze the stocks, the primary security investment instrument, and to estimate their prices and values. In this study, have been examined the basic three of these methods which they use in analyzing stocks, under three titles as ?Fundamental Analysis? ?Technical Analysis? and Random Walk-Market Efficiency Model.In finance world, Random Walk Theory suggested in order to explain the movement of stocks is one of the most popular approaches. Random Walk Theory and many theories based or not based on this theory have developed various modellings by assuming that stock movements are in linear form. However, the presence of non-linear behaviours reveals if the movements of stocks are analyzed thoroughly.In this study, on ISE 100 index, the presence of nonlinear structures have been analyzed and determined on stocks, and in this respect, it has also been proved that the market does not move randomly and in other worlds it is not effective in weak form. Consequently, it has been proposed that modellings covering non-linear structures and behaviours should be developed and used in explaining the future movements of stocks.