How to analyze stock?

  Like any other field of study, technical analysis is about certain theories. These concepts serve to guide a technical analyst's approach to financial markets. Some common concepts are: * Breakout – whereby prices forcefully penetrate an area of prior support or resistance. If you are interested in trading in only indices, look for breakouts in Nifty technical chart. * Chart pattern – distinctive pattern created by the movement of security on technical charts. * Cycles – time targets for potential change in price action * Elliott wave principle and the golden ratio - are used to calculate successive price movements and retracements * Fibonacci ratios – used as a guide to determine support and resistance of a security * Momentum – the rate of price change * Resistance – a price level that may prompt selling activity * Support – a price level that may prompt buying activity Technical analysis is an indicator that helps the investor to know: * When to enter or exit a trade * What is

  Technical analysis refers to the use of price charts and other bits of market information. Technical charts are a key aspect of the study. There are also frameworks like Dow's theories that are all used to make investment decisions. Technical analysis basically tells you the direction of the security i.e. stock, index, currency or commodity. Along with direction, you also get an idea about entry and exit price for a successful trade. Tools like stock charts, candlestick charts and stock ticker are used by technical analysis experts.     Many investors, who are new to the markets, after opening an account starting learning about ways to make money. Technical analysis can come very handy for such investors to understand the basics and trade.     People say some aspects of technical analysis began to appear in Amsterdam-based merchant Joseph de la Vega's accounts of the Dutch financial markets in the 1700s. In the 1920-1930s, Richard W. Schabacker published several books on tech