Investlogg is a stock market educational blog focusing on technical analysis, which examines stocks based on price movement and trends. It highlights key assumptions, common indicators, and steps for performing technical analysis, differentiating it from fundamental analysis, which is used for long-term investment strategies. Both analyses are essential for making informed buying or selling decisions in the stock market.

1. Investlogg is a stock market
educational and analysis blog.

2. What is Technical analysis?
Assumptions & Indicators
A stock’s buying or selling is the most crucial
decision to make as an investor.
Stock analysis is carried out on two different
levels.
• Macro-level analysis
• Micro-level analysis
Both Fundamental and technical analysis contribute
to the strategic buying or selling decision of an
investor.

3. What is Technical analysis?
Technical analysis is a method to analyze stocks
on the basis of their prevailing volume and price
movement and trends. Technical analysis
assumes that the price of the stock is a
reflection of a stock’s true market value based
on the stock’s demand and supply

4. Basic assumptions of technical
analysis
There are a few assumptions for technical
analysis.
1. Stocks are never over or undervalued
2. Price is proportional to market trends
3. Emotions do affect stock’s buying and selling

5. Technical analysis indicators
Technical indicators are tools used to identify, analyze and forecast price
trends. Although there are hundreds of such tools, some commonly used
ones are listed below.
1. Moving average indicator
2. Candlestick pattern and price, volume charts
3. Support and resistance levels
4. Oscillators

6. How to perform technical
analysis of stocks
A few steps to perform a technical analysis are given below.
1. Trend identification
2. Draw support and resistance points
3. Enter or exit the position
4. Manage risks

7. Technical analysis Vs.
Fundamental analysis
Technical and fundamental analyses of stocks both are relevant
techniques to analyze stocks
Technical analysis:
Technical analysis is specifically used by traders who enter stock for a short or
medium term and exit after a small profit is earned. Technical analysis also
uses only price and volume as an analysis factor which is acceptable in short-
term buying or selling
Fundamenta analysis:
Fundamental approach is a broader perspective to analyze stocks and is
mostly used by investors who take long-term stock positions. For the longer
term, it is essential for an investor to research a stock in detail. The
fundamental analysis not only includes a business analysis but also an industry
and overall economic analysis is important.