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Capital Market

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Technical analysis assumes that non-random price patterns and trends exist in the markets and these patterns can be identified and exploited while many different methods and tools are used, the study of charts of past price is primary. It is argued by chartists that all information needed to make buy and sell decisions is reflected already in the stock price, so fundamental analysis is a waste of time.

Fundamental analysis, on other hand, involves analyzing business financial performance, its management and competitive advantages and its competitors and markets. The analysis is performed on historical and present data with the goals of determining the value of stock. It holds that prediction of how a stock will move is based on the company's fundamental and valuation, thus to fundamentalists technical analysis, although it is interesting, it is a waste of time. There are no patterns.

Despite these contradicting views both technical analysis and fundamental analysis are essential when deciding when to buy and sell securities and which ones to buy and sell.

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Capital Market: Technical analysis Vs Fundamental Analysis

Technical analysis assumes that non-random price patterns and trends exist in the markets and these patterns can be identified and exploited while many different methods and tools are used, the study of charts of past price is primary. It is argued by chartists that all information needed to make buy and sell decisions is reflected already in the stock price, so fundamental analysis is a waste of time.

Fundamental analysis, on other hand, involves analyzing business financial performance, its management and competitive advantages and its competitors and markets. The analysis is performed on historical and present data with the goals of determining the value of stock. It holds that prediction of how a stock will move is based on the company's fundamental and valuation, thus to fundamentalists technical analysis, although it is interesting, it is a waste of time. There are no patterns.

Despite these contradicting views both technical analysis and fundamental analysis are essential when deciding when to buy and sell securities and which ones to buy and sell.

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Carrying out technical analysis is the use of past market information and movement of stock prices for predicting future direction. There are some reasons why technical analysis is used for making stock forecasts. The first is that the technical analysts seek to recognize patterns of ...

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