Analysis

Detailed examination is applied to anticipate future movements in the price of an instrument. Broadly speaking, one form of analysis can be defined as Technical Analysis—for instance, examining historical chart patterns related to price movements. Another is known as Fundamental Analysis, which considers the factors that affect the instrument's price, such as—in the case of a stock price—the macroeconomic environment, the economy, the industry, and/or the company's financial reports and management.