What are the different types of stock market analysis?

There are three primary types of stock market analysis that traders and investors use to evaluate stocks and make informed decisions:

### 1. **Fundamental Analysis**
- **Purpose**: Determines the intrinsic value of a stock by evaluating a company’s financial health, economic conditions, and industry performance.
- **Key Factors**:
- **Financial Statements**: Income statements, balance sheets, and cash flow statements.
- **Key Ratios**: P/E ratio, EPS, ROE, debt-to-equity ratio, etc.
- **Macroeconomic Factors**: Interest rates, inflation, and GDP growth.
- **Company-specific factors**: Management, competitive advantage, market share, and future growth prospects.
- **Approach**: Fundamental analysis is often used by long-term investors looking for undervalued stocks or strong companies to hold for extended periods.

### 2. **Technical Analysis**
- **Purpose**: Focuses on historical price movements and trading volume to predict future price movements.
- **Key Factors**:
- **Price Charts**: Line charts, candlestick charts, and bar charts.
- **Indicators**: Moving averages (MA), Relative Strength Index (RSI), MACD, Bollinger Bands.
- **Patterns**: Support and resistance levels, trendlines, head and shoulders, and other price patterns.
- **Volume**: Analyzing volume trends to gauge the strength of price movements.
- **Approach**: Primarily used by short-term traders, including swing traders and day traders, who want to identify trends and market sentiment.

### 3. **Sentiment Analysis**
- **Purpose**: Gauges the overall mood or sentiment of market participants to predict future price movements.
- **Key Factors**:
- **News and Media**: Assessing how news stories, earnings reports, and economic data impact market perception.
- **Market Indicators**: Fear and greed index, investor surveys, volatility indices (e.g., VIX).
- **Social Media and Forums**: Monitoring online discussions, social media trends, and retail investor sentiment.
- **Options Activity**: Unusual options activity can provide insights into institutional sentiment.
- **Approach**: Sentiment analysis can be used to complement fundamental or technical analysis, helping traders understand the emotional state of the market, particularly during volatile periods.

Each type of analysis has its own strengths, and many investors and traders use a combination of these approaches to create a comprehensive strategy for stock market investing.

There are three main types of stock market analysis: **fundamental analysis**, which examines a company's financial health and performance; **technical analysis**, which uses charts and historical price data to identify trends and patterns; and **sentiment analysis**, which assesses investor attitudes and market mood. These methods help investors make informed decisions by evaluating different aspects of the market【34†source】【35†source】.