Authors: Norma Patricia Rodriguez-Candido, Rafael Alejandro Espin-Andrade and Laura Cruz-Reyes

Emails: norma_candido@outlook.com; rafaelalejandroespinandrade@gmail.com;

cruzreyeslaura@gmail.com
Title: Fuzzy Logic Models for Technical Analysis

Business Analytics is described like the use of Mathematics and Computer Sciences for Decision
Making Analysis with the purpose to achieve better results in Business. The use of all the knowledge
of Literature, the company experts and the knowledge can be extracted from data is very important
with those purposes.
However the disciplinarity of Science have determined that Business Analytics is organized by Tool
Boxes, which need specific knowledge of mathematical theories and algorithms.
Fuzzy Tree Studio and Eureka Universe, are systems which work with Compensatory Fuzzy Logic, a
Logical Theory which allows semantic modelling, using their especial properties of interpretability
according language, with the purpose to avoid the necessary use of those disciplinarian toolboxes,
which make difficult the decision making analysis in Business [1].
Compensatory Fuzzy Logic [2] is a logical Theory which modifies the Norm and Conorm classical
approach in Multivalued fuzzy logic systems; the axiomatic approach introduces usual logical
properties like D´Morgan laws and some axioms from Decision making theory inspiration. Those are
the basis of the Interpretability properties which is supported by compatibility properties with the
most important mathematical theories in relation with social practices involving language.
Another theory called Archimedian Compensatory Fuzzy Logic [3] have studied properties with
conciliates the CFL approach with the classical approach of Norm and Conorm.
Investment analysis is an important field where Business Analytics is especially important.
Particularly the decision making issues in relation with the exchanges stock markets, like for example
portfolio analysis.
Technical Analysis joins experiences, studies and techniques, with the purpose of dealing
successfully with selling and buying in the framework of the stock exchanges markets by graphical
analysis.
The paper which will be presented, uses Fuzzy Logic to express by predicates important elements
Technical Analysis. Models are developed by Fuzzy Tree Studio and Eureka Universe systems.
They are graphical and logical editors which make possible the use of them without mathematical
or computational knowledge of algorithms and theories of Decision Making, Knowledge Discovery,
and Logics.
Fuzzy Tree Studio is capable to build Knowledge Engineering and Decision Making Models.
Eureka Universe is able to deal in addition with any Data Mining classical problem, and in addition
knowledge with any logical structure.
Rules for the different scenarios: Oscillation, Bull trend and Bear trend are taking into account
simultaneously.
Analysis of Candle Sticks and other representation ways are included.
Techniques and Studies like Candle Sticks Patterns, Bollinger Bands, MACD, Stochastic, Moving
averages and other are included into the semantic decision making models.
First kind of models elaborated based on Fuzzy Tree Studio are based in an observation list and use
just evaluation of each simple predicate which integrate the model, with a truth value into the
interval [0,1].
The second kind of models are in construction. They mix Eureka Universe with Macros of EXCEL
processing Data bases with information of the stocks previously of its use for the Eureka Universe
system.
First kind of models results are illustrated by the decision making of buying and selling criptocoins
using the IQOption framework.

References:
1. Espin-Andrade R.A. and Chao, A. Metodología para la Gestión del Conocimiento y la Toma de
Decisiones basado en la Lógica Difusa.
https://www.marilia.unesp.br/Home/Publicacoes/inteligencia-organizacional_ebook.pdf
2. Espin-Andrade R.A. et. al. Interpretability of a Logical Theory: The case of Compensatory Fuzzy
Logic. International Journal of Computational Intelligence Systems. Vol 9:4, 612-626. 2016.
http://dx.doi.org/10.1080/18756891.2016.1204111
3. Espin-Andrade R.A. et. al. Archimedian - Compensatory Fuzzy Logic Systems. Internarional Journal
of Computational Intelligence Systems. Vol 8. Supplement 2. 2015.
http://www.tandfonline.com/doi/abs/10.1080/18756891.2015.1129591.
DOI:10.1080/18756891.2015.1129591.