The stock market is being traded with multiple players. While the big investors account up to 40% (FII, DII and renowned individuals), the retail investors are still considered to be the major traders for remaining 60%.
All stocks are evaluated based on the fundamental and technical analysis. The fundamental analysis determines the intrinsic value of the stock based on its financial statements, products/services offered by the company, future investments or expansions and future earning potentials. However, as these informations are not readily available, hence it becomes a challenging factor for the major retail investors to thoroughly analyze the fundamentals based on quantitative approach.
Technical analysis is another way of approaching the stock to trade based on its historical data. This kind of analysis is primarily derived from price and volume of any perticular assets. The technical analysis if carried out with a systematic approach and discipline can fetch a good amount of reward for the risk taken by the trader.
The technical analysts derive the information from the chart. It is told by a wise man that ” Charts never lie”. Hence the actual movement of price in the market is correctly represented by the charts and technical analyst takes due advantage from it to calculate the risk & reward factor. Amongst most charts, candlesticks are more popular with the public as it gives good amount of indication with a glance itself.
Hi sir,
your work is good.