Question: please help me to draw the graph below a. Movement of stock prices on the basis of Technical Analysis : Under technical analysis past trading
please help me to draw the graph below
a. Movement of stock prices on the basis of Technical Analysis: Under technical analysis past trading activity and price changes are analysed to indicate the future stock prices. It focuses on the statistical analysis of price movements. It assumes that the price movements are a result of supply and demand of a particulare stock in the market. According to this analysis the stock prices move in trends. In other words if the trend is showing that the price of a particular stock is continuously increasing it indicates the price is going to increase further in the future and vice-versa.
b.Movement of stock prices on the basis of Fundamental Analysis: Under Fundamental analysis the intrinsic value of the stock is meassured by analysing economic and financial factors. This method analysis the stock's real and fair market value. According to this analysis if the market price of the stock is lower than its fair market value then the stock is deemed to be underpriced, which means the stock price is going to rise in future. On the other hand if the fair market value of the stock is lower than its market price then it is assumed that the future prices of stock are going to decline.
c. Movement of stock prices on the basis of Efficient Market Hypothesis: Under this it is assumed that the stocks are always traded at fair market value and they cannot be undervalued. According to this theory the markets are efficient, there are no chances of earning excess profits by investiings as every stock is fairly and accurately priced.
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