Fundamental analysis is a method of analysing the company in detail by examining the economic, financial and other quantitative and qualitative factors. This type of analysis is preferred over technical analysis but it is nearly impossible for a commoner to get the complete details of a company to do the analysis.
Technical analysis studies the demand and supply in an attempt to determine the market’s direction. It accounts traded price and volume. It provides solution to when to buy or sell a stock
The different types of charts are line chart, bar chart and candlestick chart.
.A candlestick is a chart that displays the high, low, opening and closing prices. It gives us information on whether the closing price was higher or lower than the opening price. It is used by technical analysts to determine when to enter and exit the market.
Line charts are sometimes misleading and sometimes it’s just a case of people not understanding the data behind the graph they create. The “classic” types of misleading graphs include cases where:
The Vertical scale is too big or too small, or skips numbers, or doesn’t start at zero.
The graph isn’t labeled properly.
Data is left out.
Bar charts require a category on one axis and a discrete value on the other axis. It is used to derive a relationship between the two.
