Difference Between Fundamental & Technical Analysis

So what is the difference between fundamental and Technical Analysis?

To ask which strategy is superior to one another would be an endless discussion. Both methods have proven to be highly effective when applied properly.

The main difference of the two strategies is that fundamental analysis determines the actual value of a stock or asset. Technical analysis determines the future price trend of a stock by using charts and graphs to identify patterns. 

Fundamental analysis is commonly used for long-term investing purposes whereas technical analysis is preferred for short-term & swing trading. 

For fundamental analysis the decision to buy or sell at a certain price is made based on all the data and performance that has been achieved from both the past and the present. For technical analysis the decision to enter or exit at the correct time will be made based on the market trends and prices of a stock that have occurred in the past.

Fundamental analysis VS Technical Analysis

Differnece Between fundamental & technical Analysis
Source: stoxmaster

Share

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram

More Guides

DEX aggregator

DEX aggregators are financial protocols that enable cryptocurrency traders to access a wide range of trading pools via a single platform. On trading platforms you can select the desired trading

Non-Fungible Tokens (NFTs)

What are NFTs? NFTs or non fungible tokens are cryptocurrencies or digital assets that represent a wide range of unique tangible and intangible asset. Some examples

What are gas fees

Gas Fees Explained

What are gas fees? To make a comparison, if the Ethereum blockchain was a car engine, GAS would be its fuel. The blockchain requires GAS to

How to create a Coinbase account

Cryptocurrency has become a hot topic over the last period of time. With the increasing amount of demand we are here to help you get started setting