Assalmualikum. Hope you all are doing well. I wanted to know if chart analysis of stock is halal or haram? I’ve been looking for the answer for 2 days now. But can’t seem to find it. Is it halal and why? or is it haram and why? Someone said technical analysis is like betting b’coz we predict if the price will go up or down. So i just wanted a clear picture on that
May Allah bless you.
Analysis are just ways of forecasting market’s movements, and to trade accordingly. We all do forecasting in our lives one way or another (see: Superforecasting: the art and science of prediction), and this does not go against shariah as longer as we do not claim to have the knowledge of the unseen.
Similarly, trading based on forecasts does not fall under the definition of betting in Islam.
Therefore, using analysis to trade in stock is not wrong as longer as we are buying halal stocks through halal means.
And Allah knows best!
Sir i have a question related to this …if we predict Market price or currancy and prediction is related to rise and fall and it is for 5 mints??and we are doing work under a broker or person who know about the market more than use and we are not getting loss we are getting profit and work 6 hours a day . .is it halal or haram??
Did you get the answer for it? I need to know the same thing?