People’s view about potential of company changes share prices. One can choose fundamental analysis for long term investment and technical analysis for shorter term trading. Data required for fundamental analysis is not available easily for retail investor. Technical analysis mainly need price and volume data which is easily available. News/reports drives people’s sentiments which changes share prices. Its not good to invest in penny stocks as it lack liquidity and possibility of manipulation. Line chart, bar chart and candlestick charts can be used for technical analysis. Line chart do not indicate volatility of stocks which can be overcome by bar chart which give O-C-H-L indication on same bar. Candlesticks give same information as bar chart, but with more visual appeal with painting bars with different colors and so easy to read.
, , Basics of Analysis, Bar chart, candlestick charts, fundamental analysis, Line chart, news, Penny stocks, Share price manipulation, technical analysis
