When it comes to figuring out when to buy a stock, there are two main schools of thought: fundamental analysis and technical analysis.
Fundamental analysis involves all the material aspects of a company: its sales, revenue, profits and the day-to-day details of a business’ operations.
Technical analysis involves only looking at charts. A stock chart is a visual representation of the price movement (also known as price action) of a particular security over time.
Using different mathematical indicators, it’s thought that traders can sometimes anticipate future price movements based on previous patterns.
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