Difference between Technical and Fundamental analysis

By Anonymous 3 years ago
100% Upvoted
3edenMas 3edenMas Newcomer 3 years ago
Fundamental analysis evaluates financial asset by attempting to measure their intrinsic value Fundamental analysts study everything from the overall economy and industry conditions to the financial strength and management of individual companies. Earnings, expenses, assets and liabilities all come under scrutiny by fundamental analysts.

Technical analysis differs from fundamental analysis, in that traders attempt to identify opportunities by looking at statistical trends, such as movements in a stock's price and volume. The core assumption is that all known fundamentals are factored into price, thus there is no need to pay close attention to them. Technical analysts do not attempt to measure a security's intrinsic value. Instead, they use charts to identify patterns and trends that suggest what a financial asset will do in the future.

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