Fundamental analysis is using qualitative data (such as management experience, brand name) and quantitative data such as revenue, profit etc and drill down to find the value of one share in the market. This tells us if a share is overvalued or undervalued
Technical analysis is using Price and Volume data to decide, approximately, what the entry point and exit point of one share in the market. It is done to help create a trade plan
News, earnings report and analysts report drive the sentiment of the market with respect to the share price. As the movement of the share price swings based on the earnings ability, positive news moves share price up
Eg. If TCS publishes a news article stating that they have a new patented technology in Artificial Intelligence and the prospects are profitable, the stock price will go up.
Line charts do not show the full extent of the movement of share price in a day. Bar charts can be misread easily.
The primary advantage of candlesticks can be seen in daily and weekly charts. Where the chart clearly shows the opening price, the characteristic features of price movement for that day (Eg – Bullish engulfing / Hammer)
