There are broadly two types of analsysis – fundamental and technical. Fundamental analysis studies the company and technical analysis studies the market. For retail investors fundamental analysis is very hard to perform and it is recommended to go with technical analysis.
Technical analysis is simple and transparent and uses Price/Volume to arrive at Demand and Supply. This method can be applied to any stock. Charts are used to perform technical analysis. Candlestick charts are preferred for performing analysis in the short term (2-3 months)
