There are 2 types of analysis in commodity/stock or any screen based trading market like currency-forex.
1.FUNDAMENTAL ANALYSIS- It tells us – WHAT to buy/sell.
It depends on actual demand & supply. It will discuss production, demand, inventory & govt. policies.
Main tools used in this analysis are data & facts.
It helps to understand mainly short term or positional move in coming months & years.
It is more complicated, time consuming & less useful in daily trading.
2.TECHNICAL ANALYSIS- It tells us – WHEN to buy/sell.
It depend on buyers & sellers, who are more affected by recent sentiments instead of actual demand & supply.
main tools are CHARTS
CHART shows movement of price & volume with time.
Main types of charts are-
Line chart shows UPTREND when line is going up. Down trend with RED line.
When price neither goes up nor down and bound in range, then it is called SIDEWAYS.
Candlestick shows minute to minute detail of movement. Green or white colour shows upside.
RED or black shows downside.
There are so many candlestick patterns to understand the periodical behavior of any scrip.
These type of charts given below are not very much useful for trading purpose.
more details will be given in the same article in future.