Fundamental analysis involves analyzing a company’s financial statements to determine the fair value of the business.
Fundamental analysis instead looks at economic and financial factors that influence a business
Technical analysis assumes that a security’s price already reflects all publicly-available information and instead focuses on the statistical analysis of price movements.
Technical analysis looks at the price movement of a security and uses this data to predict future price movements
Technical analysis is a method of evaluating securities that involve statistical analysis of market activity, such as price and volume. Technical analysts do not attempt to measure a security’s intrinsic value, but rather, use charts and other tools to identify patterns that can be used as a basis for investment decisions.
Technical analysis is the analysis of supply and demand in the market to determine where the price trend is headed
Technical analysis attempts to understand the market sentiment behind price trends rather than analyzing a security’s fundamental attributes
If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor over the long-term.
FORMS OF TECHNICAL ANALYSIS
ØTechnical Indicators and oscillators
ØCombination of techniques
Technical analysts’ exclusive use of historical price and volume data
Unlike fundamental analysts, technical analysts don’t concern themselves with a stock’s valuation – the only thing that matters are past trading data and what information the data might provide about future price movements.