Fundamental Analysis:
Fundamental analysis involves analyzing a company’s financial statements to determine the fair value of the business.
The Fundamental analysis focuses on the financial statements of the company being evaluated. To understand the c.ompany revenues, earnings, future growth, return on equity, profit margins and other data to determine a company’s underlying value and potential for future growth
Technical Analysis:
Technical analysis is a trading tool employed to evaluate securities and identify trading opportunities by analyzing statistics gathered from trading activity, such as price movement and volume Technical Analysis helps identify trading opportunities using actions of Market Participants through charts, patterns, and indicators.
Three types of charts:
Line Chart,Bar Chart,Candlestick chart.
Each charts requires price as their input data and time is the frequency which is plotted against price.
Line chart – it is the continuous line representation of the daily closing price. It is beneficial when we need to analyse a stock for long period
Bar Chart: that shows the open, high, low and close price of a certain time period.This type of chart is often used by technical analysts to spot trends and view stock movements, particularly on a shorter term basis
Candlestick chart: The Japanese Candlestick is another way of displaying market price data, with the opening and closing prices defining a rectangle within the range for each time unit.
one hour, 5 min, weekly charts of Candle stick are useful for Intraday or weekly trader.
