Basically, there are two types of analysis used in the stock market – fundamental analysis and technical analysis. In this article, we will deal more with technical analysis.
Companies that carry out technical analysis look into charts for peaks, ups and downs, trends and other factors that can greatly affect the performance of stocks in the market. You can also get more information about Stock Options Analysis via OptionTiger.
Technical analysis of stocks is one of the most widely used forms of influence in stock buying and selling, but contrary to this only a few of the people are quite successful in using this analysis technique.
Stock technical analysis does not determine or measure fundamental security values; instead, they see the performance of stock patterns and from there get a report or analysis of stocks will be a future performance.
An important chart in stock analysis and one good example of a chart that is widely used is the Chart Bar. The bar chart consists mainly of one vertical line representing the highest and lowest price points of a stock and two horizontal lines representing the opening and closing of the stock price.
The benefits of using bar charts against line graphs are the entities available in the bar graph. In the bar graph, you will be able to see the lowest price point of stock and that is the highest and you will also be able to determine the opening price and closing price for a certain time period.