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Step 04 – Basics of Stock Analysis

Stock analysis is of two types – Fundamental and Technical. Fundamental analysis is based on company data like earnings, profit etc and is typically done by institutions who has access to these data. Retailers cannot get these data and so cannot determine the the movement of this stock. Technical analysis is based on price, volume, history and charts and provide a reasonable better way of determining the stock movement. Technical analysis is done through charts – line, bar and candlestick. Candlestick charts provide a more detailed data on market movement based on its patterns.

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