1. Fundamental & Technical Analysis

2. Is the company's stock a good investment?
Fundamental analysis serves to answer questions, such as: 
Is the company's revenue growing?
Is it actually making a profit?
Is it in a strong-enough position to beat out its competitors in the future?
Is it able to repay its debts?
Is management trying to "cook the books"?

3. Fundamental analysis
Fundamentals also include everything from a company's market share to the quality of its management. 
Quantitative – capable of being measured or expressed in numerical terms.
Qualitative – related to or based on the quality or character of something, often as opposed to its size or quantity.

4. Fundamental analysis
one of the primary assumptions of fundamental analysis is that the price on the stock market does not fully reflect a stock's "real" value
let's say thats a company's stock was trading at After doing extensive homework on the company, you determine that it really is worth 1500.
This leads us to one of the second major assumptions of fundamental analysis: in the long run, the stock market will reflect the fundamentals.

5. Fundamental analysis
The big unknowns are:  1)You don't know if your estimate of intrinsic value is correct;
2)You don't know how long it will take for the intrinsic value to
be reflected in the marketplace. 

6. company-specific qualitative factors
Business Model 
Management 
Competitive Advantage
Corporate Governance
Major statements 
Notes to the statements : Accounting methods & discloser
Auditors reports

7. company-specific qualitative factors
Customers 
Market Share 
Industry Growth 
Competition

8. Technical Analysis
Fundamental analysis involves analysing the characteristics of a company in order to estimate its value.
Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company or a commodity.
Technicians are only interested in the price movements in the market. 

9. The field of technical analysis is based on three assumptions:
The market discounts everything. (stock's price reflects everything that has or could affect the company - including fundamental factors.)
Price moves in trends. 
History tends to repeat itself. 

10. Differences Charts vs. Financial Statements Time Horizon
Trading Versus Investing 
The Critics (……..looks backward……. looks backward as well as Forward )

11. Can They Co-Exist? 
many market participants have experienced great success by combining the two.
some fundamental analysts use technical analysis techniques to figure out the best time to enter into an undervalued security.
Oftentimes, this situation occurs when the security is severely oversold. By timing entry into a security, the gains on the investment can be greatly improved. 

12. Can They Co-Exist? 
some technical traders might look at fundamentals to add strength to a technical signal.
For example, if a sell signal is given through technical patterns and indicators, a technical trader might look to reaffirm his or her decision by looking at some key fundamental data.
Oftentimes, having both the fundamentals and technical on your side can provide the best-case scenario for a trade. 

13. SOURCEwww.investopedia.com/university/technical/:

15. Trends in charts Trends are not always easy to see
In any given chart, you will probably notice that prices do not tend to move in a straight line in any direction
but rather in a series of highs and lows.
In technical analysis, it is the movement of the highs and lows that constitutes a trend

16. Indicators of economic prosperity
Economic Growth (GDP: Gross domestic production)
Economic Development(HEWI: Human economic welfare Index)
Social Development
Sustainable Development
Quality of Life, Welfare and Well-being
Human Development Index (HDI)
Genuine Progress Indicator (GPI)
Weighted Index of Social Indicators (WISP)

17. Dow Theory more than 100 years old
Dow theory was formulated from a series of Wall Street Journal editorials authored by Charles H. Dow from 1900 until the time of his death in 1902
Due to his death, Dow never published his complete theory on the markets, but several followers and associates have published works that have expanded on the editorials.
Dow believed that the stock market as a whole was a reliable measure of overall business conditions

18. Dow Theory( The first basic premises)
All information - past, current and even future - is discounted into the markets and reflected in the prices of stocks and indexes. 
Inflation rate
Future project of the companies
emotions of investors
Announcement of the company
Interest rate
Association of the company
Earning of the companies
Demand of the product or services

19. Dow Theory
Follower of Dow theory will look at the price movement of the major market indexes.
Once they have an idea of the prevailing trend in the market, they will make an investment decision.
If the prevailing trend is upward, it follows that an investor would buy individual stocks trading at a fair valuation.
This is where a broad understanding the fundamental factors that affect a company can be helpful. 

20. Dow Theory Dow theory is much more suited to technical analysis.
An important part of Dow theory is distinguishing the overall direction of the market.
To do this, the theory uses trend analysis. 
An upward trend is broken up into several rallies, where each rally has a high and a low.
For a market to be considered in an uptrend, each peak in the rally must reach a higher level than the previous rally's peak, and each low in the rally must be higher than the previous rally's low. 

21. Upward Trend

22. Downward Trend
A downward trend is broken up into several sell-offs, in which each sell-off also has a high and a low.
To be considered a downtrend in Dow terms, each new low in the sell-off must be lower than the previous sell-off's low and the peak in the sell-off must be lower then the peak in the previous sell-off.

23. Dow theory identifies three trends within the market:
Primary Trend
Secondary Trend
Minor Trend

24. Primary Trend
A primary trend is the largest trend lasting for more then a year.
The primary trend will also impact the secondary and minor trends within the market.
Regardless of trend length, the primary trend remains in effect until there is a confirmed reversal.

25. Secondary Trend
secondary trend is an intermediate trend that lasts three weeks to three months and is often associated with a movement against the primary trend.
A primary trend is the main direction in which the market is moving.
secondary trend moves in the opposite direction of the primary trend, or as a correction to the primary trend.

26. Minor Trend
The short term trend may last from a week up to as long as 6 weeks.
It is a minor trend
As it is very short term, it is a bit difficult
To analyse short term trends, and major focus remains on Primary and Intermediate

27. Dows Theory The market has three phase: Accumulation Participation
Distribution

28. Accumulation
Accumulation phase is the first phase of a primary bull market
where informed investors make buying decisions and there is no much noise in the market.
People accumulate stocks on declines and hold it for gaining in coming times.
The market may be down, but smart people think this is it and no more decline in markets lets accumulate

29. Participation
Participation is the phase when market starts showing signs of reversal
and people join in and starts confidently buying stocks, taking the market to rise at higher levels
As most of the macro data like GDP, Inflation, IIP, etc. works in the favour of the markets. In short, buying interests is at its peak.

30. Distribution
Once the markets are heated up with excess buying, we see smart investors booking profits followed by other people who accumulated in the second stage of participation.
Suddenly, lot of profit booking happens, and the markets are back in the selling spree.
And hence the market falls like pack of cards, which is nothing but the distribution stage.

31. Dows Theory Volumes must support the trend:
Dow was of the view that any run whether bullish or bearish must be confirmed with High volumes.
If the volumes are small, it means that market trend is still not confirm.
So, when markets rise, it must be accompanied with High volumes, and even when market falls, it should also comprise higher volumes for the trend to be confirmed.

32. Dows Theory
It is considered that the trend remains in force until it gives definite signals that it has reversed:
This principle is basic principle of Technical Analysis. Practically, if it is not true, the entire technical analysis would not make sense.
The principle is linked to the law of motion in general:
anything that moves is likely to continue to move until an external force does not prevent it.
So, don't take hasty decisions, wait for the confirmation that the trend has reversed its direction.

33. Types of Moving Average
1. Simple moving Average
2. Linear weightage Average
3. Exponential moving Average

34. Simple moving Average
The simple moving average (or SMA) is an average of the closing price of a stock over a specified number of periods
When the stock price changes, the moving average changes accordingly.

35. For Example below table calculating the four day moving average for Reliance Industries Ltd. from 19th April 2010 to 3rd May 2010 (closed price)
Date
High
Low
Open
Close
4 Day Moving Average
03/05/2010
1032.6
1018.1
1026.0
30/04/2010
1047.2
1030.0
1040.0
1033.6
29/04/2010
1039.9
1024.0
1046.2
28/04/2010
1012.0
27/04/2010
1068.0
1055.0
1063.0
26/04/2010
1097.8
1063.5
1080.0
23/04/2010
1096.0
1088.2
22/04/2010
1093.9
1050.5
21/04/2010
1073.7
1070.0
1054.1
N/A
20/04/2010
1063.2
19/04/2010
1079.8
1051.0
1061.8

36. Simple moving Average
Many individuals argue that the usefulness of this type of average is limited because each point in the data series has the same impact on the result regardless of where it occurs in the sequence
The critics argue that the most recent data is more important and, therefore, it should also have a higher weighting

37. Linear Weighted Average
The linear weighted moving average is calculated by taking the sum of all the closing prices over a certain time period and multiplying them by the position of the data point and then dividing by the sum of the number of periods.

38. Linear Weighted Average
((90.9*(5/15))+(90.36*(4/15))+(90.28*(3/15))+(90.83*(2/15))+(90.91*(1/15)))
The weighted average is calculate by multiplying the given price by its associated weighting and then summing the values. In the example above, the weighted 5-day moving average would be $90.62.

39. Exponential moving Average
The exponential moving average (EMA) is a weighted average of the last n prices, where the weighting decreases exponentially with each previous price/period.
[Close - previous EMA] x (2 / n+1) + previous EMA
A 4-period EMA with prices of , , , and :
using the calculation [ ] x (2/5)
EMA value of

40. Exponential moving Average
This type of moving average reacts faster to recent price changes
The 12- and 26-day EMAs are the most popular short-term averages
For traders who trade intraday and fast-moving markets, the EMA is more applicable. Quite often traders use EMAs to determine a trading bias.

41. Moving Average Trading Uses
used for both analysis and trading signals
When the price is above its moving average it shows that the price is trading higher than it has (on average) over the period being analyzed
That helps confirm an uptrend.
When the price is below its moving average it shows that the price is trading lower than it has (on average) over the period being analyzed.
That helps confirm a downtrend.

42. Moving Average Trading Uses
When the price crosses above its moving average it shows the price is getting stronger relative to where it was,
and
if the price crosses below its moving average it shows the price is getting weaker relative to where it was. 

43. Support and Resistance
You'll often hear technical analysts talk about the on going battle between the bulls and the bears, or the struggle between buyers (demand) and sellers (supply). 
This is revealed by the prices a security seldom moves above (resistance) or below (support). 

44. support
Support is the price level at which demand is thought to be strong enough to prevent the price from declining further.
The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell.
By the time the price reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support.

45. support

46. support
Support does not always hold and a break below support signals that the bears have won out over the bulls.
A decline below support indicates a new willingness to sell and/or a lack of incentive to buy.
Support breaks and new lows signal that sellers have reduced their expectations and are willing sell at even lower prices.
In addition, buyers could not be coerced into buying until prices declined below support or below the previous low. Once support is broken, another support level will have to be established at a lower level.

47. Resistance
Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further.
 The logic dictates that as the price advances towards resistance, sellers become more inclined to sell and buyers become less inclined to buy.
By the time the price reaches the resistance level, it is believed that supply will overcome demand and prevent the price from rising above resistance.

48. Resistance

49. Resistance
Resistance does not always hold and a break above resistance signals that the bulls have won out over the bears.
A break above resistance shows a new willingness to buy and/or a lack of incentive to sell.
Resistance breaks and new highs indicate buyers have increased their expectations and are willing to buy at even higher prices.
Once resistance is broken, another resistance level will have to be established at a higher level.

50. Trading Range
Trading ranges can play an important role in determining support and resistance as turning points or as continuation patterns.
A break above is a victory for the bulls (demand) and a break below is a victory for the bears (supply).

51. Point and Figure Charts
Chart Types
Line chart
Bar Chart
Candlestick Charts 
Point and Figure Charts 

52. Line chart

53. Line Chart
The most basic of the four charts is the line chart because it represents only the closing prices over a set period of time. 
The line is formed by connecting the closing prices over the time frame.
Line charts do not provide visual information of the trading range for the individual points such as the high, low and opening prices.
However, the closing price is often considered to be the most important price in stock data

54. Bar Chart

55. Bar Chart
The price-high and low are represented by the top and bottom of the vertical line, or bar.
The opening price is shown as the horizontal line pointing to the left
while closing prices is shown as the horizontal line pointing to the right. 

56. Bar Chart
if the left dash (open) is lower than the right dash (close) then the bar will be shaded black.(stock value increase)
A bar that is colored red signals that the stock has gone down in value over that period.( stock Value Decreased)

57. Candlestick Charts 

58. Candlestick Charts 
This stock market chart originated in Japan over 300 years ago.
A daily candlestick is based on the open, high, low & closing stock prices.
The weekly candlestick is on Monday’s open, the weekly high-low price range, and Friday’s closing price. 

59. Chart Pattern

60. Chart Pattern

61. Chart Pattern

62. Chart Pattern

63. Chart Pattern

64. Chart Pattern

65. Chart Pattern

66. Chart Pattern

67. Volume Analysis
Volume is simply the number of shares or contracts that trade over a given period of time, usually a day.
The higher the volume, the more active the security.
Any price movement up or down with relatively high volume is seen as a stronger, more relevant move than a similar move with weak volume.
a stock jumps 5% in one trading day after being in a long downtrend. Is this a sign of a trend reversal?

68. Volume Analysis This is where volume helps traders.
If volume is high during the day relative to the average daily volume, it is a sign that the reversal is probably for real.
On the other hand, if the volume is below average, there may not be enough conviction to support a true trend reversal

69. Volume Analysis Volume should move with the trend.
If prices are moving in an upward trend, volume should increase (and vice versa).
If the previous relationship between volume and price movements starts to deteriorate, it is usually a sign of weakness in the trend.
For example, if the stock is in an uptrend but the up trading days are marked with lower volume, it is a sign that the trend is starting to lose its legs and may soon end. 

70. Breadth Analysis
Market breadth is a technique used in technical analysis that attempts to gauge the direction of the overall market by analyzing the number of companies advancing relative to the number declining.
Positive market breadth occurs when more companies are moving higher than are moving lower.
Advances: The number of stocks that closed at a higher price than the previous day's close
Declines: The number of stocks that closed at a lower price than the previous day's close.

71. Breadth Analysis Advance –Decline Ratio
A low A/D ratio can indicate an oversold market, while a high A/D ratio can indicate an overbought market.
Oversold is a condition in which the price of an underlying asset has fallen sharply to a level below where its true value resides.
Overbought refers to a situation in which the demand for a certain asset or security unjustifiably pushes the price of that asset or underlying asset to levels that are not justified by fundamentals.

72. Elliott Wave Theory
Elliott Wave Theory was developed by R.N. Elliott and popularized by Robert Prechter.
Based on ebb and flow, Elliott identified a certain structure to price movements in the financial markets.
There are two types of waves: impulse and corrective.
Impulse waves move in the direction of the larger degree wave.
When the larger degree wave is up, advancing waves are impulsive and declining waves are corrective. 

73. Elliott Wave Theory
Impulse waves, also called motive waves, move with the bigger trend or larger degree wave
Corrective waves move against the larger degree wave.

76. Waves 1-2-3-4-5 are one lesser degree than Wave I
Wave I is one larger degree than Waves

77. Three rules of Elliot waves
Rule 1: Wave 2 cannot retrace more than 100% of Wave 1.
Rule 2: Wave 3 can never be the shortest of the three impulse waves.
Rule 3: Wave 4 can never overlap Wave 1.

78. Three Guidelines of Elliot waves
Guideline 1: When Wave 3 is the longest impulse wave, Wave 5 will approximately equal Wave 1.
Guideline 2: The forms for Wave 2 and Wave 4 will alternate. If Wave 2 is a sharp correction, Wave 4 will be a flat correction. If Wave 2 is flat, Wave 4 will be sharp.
Guideline 3: After a 5-wave impulse advance, corrections (abc) usually end in the area of prior Wave 4 low.

79. Fibonacci Numbers
Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century. 
The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
Each term in this sequence is simply the sum of the two preceding terms and sequence continues infinitely.
One of the remarkable characteristics of this numerical sequence is that each number is approximately times greater than the preceding number.

80. Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144
The key Fibonacci ratio of 61.8% - also referred to as "the golden ratio" or "the golden mean" - is found by dividing one number in the series by the number that follows it. For example: 8/13 = , and 55/89 =
The 38.2% ratio is found by dividing one number in the series by the number that is found two places to the right. For example: 55/144 =
The 23.6% ratio is found by dividing one number in the series by the number that is three places to the right. For example: 8/34 =

81. Fibonacci Numbers
In addition to the ratios described above, many traders also like using the 50% and 78.6% levels. The 50% retracement level is not really a Fibonacci ratio, but it is used because of the overwhelming tendency for an asset to continue in a certain direction once it completes a 50% retracement. Read more: What is Fibonacci retracement, and where do the ratios that are used come from? | Investopedia  Follow us: Investopedia on Facebook

82. Momentum Momentum = Current Price – Earlier Price
Momentum in technical analysis is the rate of change of security prices or market indexes.
Usually, closing prices are used to calculate momentum.
Momentum = Current Price – Earlier Price

83. Current Price - Earlier PriceEarlier Price
ROC( Rate of Change)
Rate of Change (ROC) =
Current Price - Earlier PriceEarlier Price ×
100
For instance, if the indicator is greater than 30%, this would indicate an overbought condition, and there will likely be a pullback as traders sell to take profits.
If it is less than -30%, then it is oversold, so it would be a good time to buy since the stock is likely to rise in the immediate future.

84. Relative Strength Index (RSI)
The relative strength index (RSI), developed by J. Welles Wilder, compares the stock's gains over its losses over a specific duration, usually 14 trading days.
RSI= /1+RS
RS=Up/Downs
Up= Sum of gains on up days over 14-day period / 14
Downs=Sum of losses on down days over period / 14

85. CAPM Model
The standard CAPM pricing model is used to help determine the return investors require for a given level of risk
CAPM is a method for calculating anticipated investment risks and returns.
The model was developed by economist and Nobel Memorial Prize winner William Sharpe.
It says that the return on an investment should equal its cost of capital and that the only way to earn a higher return is by taking on more risk. 

86. Assumption of CAPM Model
All investors are price takers. Their numbers is so large that no single investor can affect the price.
Assets and security are perfectly divisible.
All investor plans for one holding period.
Investors can lend and borrow at an identical risk free rate.
There are no transactions costs and income tax.

87. CAPM Model

88. Risk

90. Refernces http://www.rediff.com/money/2008/feb/21bspec.htm
ww.investopedia.com/university/dowtheory/dowtheory1.asp