Analysis & Valuation
Reading charts, models, and fundamentals to value what you own.
Two investors can look at the same company and reach opposite conclusions, and this topic covers the disciplines that explain why.
It pairs technical analysis, reading price and volume through trend, support and resistance, and momentum, with fundamental valuation, the work of turning financial data into an estimate of worth through discounted cash flow and the price-to-earnings ratio.
Quantitative methods and financial modeling sit alongside, giving structure to both.
Investing With Purpose treats analysis as a framework for probability and value rather than certainty.
The goal is to judge what an asset is worth and time an entry, using the chart and the model together instead of trusting either alone.
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A trend is the general direction a market is moving over a chosen timeframe. Almost every other tool in technical…
Support and resistance are the price zones where buyers or sellers have repeatedly stepped in. They form the backbone…
RSI is a momentum indicator that tells you how stretched a stock's recent gains are relative to its recent losses. It…
Discounted cash flow is the standard method for estimating the intrinsic value of a cash-generating asset. You project…
The P/E ratio tells you how many dollars investors are paying today for each dollar of a company's annual earnings. It…
Intrinsic value is what an asset is worth based on its fundamentals, independent of whatever price the market is…
More in Analysis & Valuation
A candlestick chart plots the open, high, low, and close for each period as a single shape that looks like a candle…
A bar chart, often called an OHLC bar chart, plots the open, high, low, and close for each period as a vertical line…
A line chart connects the closing prices of each period with a continuous line. It is the simplest chart style in…
A breakout is a decisive move through a prior support or resistance level, usually accompanied by rising volume.…
A false breakout happens when price pokes beyond a support or resistance level, fails to follow through, and quickly…
A retracement is a temporary pullback inside an ongoing trend. A reversal is the trend itself changing direction.…
Consolidation is a period when price oscillates within a defined range instead of trending. It reflects a temporary…
A moving average smooths a price series into a single line that updates each bar. It is the most basic tool in…
The golden cross and the death cross are the two most famous moving average crossover signals. Both rely on the 50-day…
A doji is a candlestick with almost no body, meaning the open and close for the period were nearly equal. It is the…
Market capitalization, or market cap, is the total dollar value the stock market currently places on a company's…
CAGR is the single annualized rate that would turn a starting value into an ending value if it compounded at the same…
The hammer candle pattern is a single bar that suggests a falling market is about to turn back up. It prints after a…
The hanging man candle pattern is a single bar that warns a rally may be ending. Its shape is identical to the hammer,…
The inverted hammer pattern is a single candlestick that hints at a bullish reversal after a downtrend. It has a small…
The shooting star candle pattern is a single bar that warns a rally may be exhausted. It has a small real body at the…
This doji types overview walks through the five common variants of the doji candlestick. Each shows indecision in a…
The long-legged doji is a candlestick with a very small body and long upper and lower shadows of similar length. It…
The dragonfly doji is a candlestick that looks like the letter T. Open, high, and close print at essentially the same…
The gravestone doji is a candlestick shaped like an upside down T. Open, low, and close print at essentially the same…
The four-price doji is the rarest doji variant. Open, high, low, and close all print at exactly the same level, so the…
The spinning top candle is a bar with a small real body roughly centered between long upper and lower shadows. It tells…
A marubozu candle is a candlestick with no upper or lower shadow. The open and close sit at the extreme high and low of…
The three white soldiers pattern is a bullish reversal signal made of three long green candles in a row. Each bar opens…