Basic Rules

There are two major processes employed for stock investment. They are,

  1. Fundamental Analysis

  2. Technical analysis

Most of the investors use both these techniques for long term and short-term investments.

Fundamental analysis is examining corporate results, earnings, dividends, new products, research and the like.

Technical analysis involves applying many methods, tools and techniques as well, one of which is the use of charts. Using charts, technical analysts seek to identify the trend and attempt to exploit them.

Technical analysts using charts look for forms such as lines of support, resistance and search for archetypal price chart patterns, such as candlestick patterns and study technical indicators , moving averages,

Technical analysts widely use market indicators of many sorts, some of which are mathematical transformations of price, often including up and down volume, advance/decline data and other inputs.

Examples include the moving average, relative strength index, and MACD.

FortunePRO provides all the necessary tools for technical analysis to help you take better investment decisions.

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