Stock analysis is a method for investors and traders to make buying and selling decisions. There are two types of stock analysis. They are Fundamental and Technical analysis.
Fundamental analysis is the methodology to estimate intrinsic value of the stock. This needs to analyse the qualitative and quantitative aspects of the business. Fundamental analysis help the investor to identify the better stock for long term investment. In practical, obtaining necessary inputs for fundamental analysis by retail investor is difficult.
Technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. With technical analysis we can understand the price movements and directions but cannot predict the future price accurately.
Stock Charts are necessary to conduct technical analysis. There are various types of charts are available. The most popular are line charts, bar charts and candlestick charts.
Candle stick charts help the analyst to understand the short term price movements and various candle stick patters help the analyst to understand the price movements in better way and helps taking the better trading decisions.
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