Fundamental vs
Technical Analysis
Fundamental Analysis
It is examination of a company's financial data, management, business concept, and competition. It also focusses on economic data to assess the present and future growth of the economy. To forecast future stock prices, fundamental analysis combines economic, industry, and company analysis to derive a stock's current fair value. If fair value is not equal to the current stock price, they believe that the stock is either over or undervalued and the market price will move towards fair value.
Technical Analysis
It is the forecasting of future financial price movements based on an examination of past price movements. It helps investors anticipate what is likely to happen to prices in the near future. Technical analysis uses charts that show price over time. Technical analysis is applicable to stocks, indices, commodities, futures or any tradable instrument where the price is influenced by the forces of supply and demand. The time frame can be based on intraday, daily, weekly, monthly or many years.