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Fundamental Vs Technical Analysis

The document compares technical analysis and fundamental analysis, which are the two main schools of thought in financial markets. Technical analysis looks at price movements to predict future prices, while fundamental analysis examines economic factors like financial statements to determine a company's intrinsic value and make investment decisions. While technical analysis uses shorter timeframes, fundamental analysis often looks at data over multiple years. Some market participants successfully combine the two approaches.

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Kundan Kadam
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51 views6 pages

Fundamental Vs Technical Analysis

The document compares technical analysis and fundamental analysis, which are the two main schools of thought in financial markets. Technical analysis looks at price movements to predict future prices, while fundamental analysis examines economic factors like financial statements to determine a company's intrinsic value and make investment decisions. While technical analysis uses shorter timeframes, fundamental analysis often looks at data over multiple years. Some market participants successfully combine the two approaches.

Uploaded by

Kundan Kadam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Fundamental

Vs Technical Analysis

Technical analysis and fundamental analysis are the


two main schools of thought in the nancial
markets. Technical analysis looks at the price
movement of a share and uses this data to predict
its future price movements. Fundamental analysis,
on the other hand, looks at economic factors,
known as fundamentals.

By looking at the balance sheet, cash ow statement


and income statement, a fundamental analyst tries to
determine a company's value. In nancial terms, an
analyst aAempts to measure a company's intrinsic
value. In this approach, investment decisions are fairly
easy to make - if the price of a stock trades below its
intrinsic value, it's a good investment.

Fundamental analysis takes a relaCvely long-term


approach to analyzing the market compared to
technical analysis. While technical analysis can be
used on a Cmeframe of weeks, days or even
minutes, fundamental analysis oFen looks at data
over a number of years.

Although technical analysis and fundamental


analysis are seen by many as polar opposites - the
oil and water of invesCng - many market
parCcipants have experienced great success by
combining the two. For example, some
fundamental analysts use technical analysis
techniques to gure out the best Cme to enter
into an undervalued security.

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