Fundamental vs technical analysis

Fundamental vs technical analysis : The fundamental analysis evaluates security by attempting the measure intrinsic value. Technical analysis is different from fundamental analysis as traders look at statistical trends in the stock price and volume. So look at the price chart that gives idea of direction of trend. Also gives an idea of market that agrees with your valuation or not. We can build a watch list of stock prepared based on fundamental analysis. Then we can use technical analysis to decide when to buy them. Technical analysis can be used to find entry level for the growth of stock. The stocks can continue trading high after becoming overvalued. If a stock trading is close to fair value it makes a sense for the price to consolidate in its range. The fundamental picture remains at the same as we use technical method to trade within the range.

Process of fundamental analysis

This is an extensive process where factors have an influence over the price of security investigated to arrive at a conclusion.

Technical Process They are totally based on the calculation of data. Also involves the historical prices of a stock, returns, and volume of trade. So through analysis technical analysts attempt to project future price movements of a security.

Main difference between fundamental analysis and technical analysis

Technical

Technical is a method used to determine the future price of the stock using charts to identify the patterns and stocks. The technical determines the security by analyzing price movement and volume of trade. The investor uses them for short term trading. They support and resistance moving averages that tend based on indicators. They are short-term investments in the stock market. It is used to identify the right time to enter/exit the market. Technical focuses on past data only. It is predicted on the basis of charts and indicators.

Fundamental analysis

It is the practice for analyzing securities by determining intrinsic factors of stock. The fundamental analysis understands security by financial performance and market conditions. The participant utilizes it for long term investment. They have overvalued and undervalued stocks. It is called a long term investment. Used to identify the intrinsic value of the stock. They will focus on past and future data. It is predicted on the basis of the past and present performance of the company.

© 2020 All rights reserved My blogs (Posts) and videos is only educational purpose on stock market and depend on my self research and analysis. I can't advice to buy/sell any stock. because I'm not SEBI registered.If someone wants to inter the stock market, then my advice is first learn from an authorize institution or take advice from your authorized adviser.
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