TECHNICAL ANALYSIS; DIFFERENCEBETWEEN FUNDAMENTAL AND TECHNICAL ANALYSIS

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TECHNICAL ANALYSIS What Is the Difference Between Fundamental and Technical Analysis? Thank you for subscribing to the Investopedia Introduction to Technical Analysis email course. When you're assessing which style of investor you are, there are many questions that only you can answer. One is whether you are more of a fundamental trader or a technical trader. Fundamental trading techniques are the ones that most beginning investors start with. They are so called because they involve analyzing a company's "fundamentals"--that is, the kinds of basic quantitative and qualitative information you would find in a quarterly report. Examples of quantitative include a company's profits and losses, changes in share price, etc. Qualitative data would include things like a change in the company's leadership or decision to change the company vision. It is certainly possible to invest using only fundamentals. Many investors, however, find technical analysis to be helpful. Technical analysts believe the past trading activity and price changes of a security are better indicators of the security's likely future price movements than the intrinsic value of the security. Based on careful interpretation of past trading patterns, technical traders try to predict future price movements. The technical trader employs an arsenal of technical indicators to analyze short-term price movements. Examples of common technical indicators include the Relative Strength Index and Money Flow Index, plus Stochastics, MACD and Bollinger Bands®. Most analysis involving charts of any kind would count as technical analysis. Typically (but not always), technical analysis is a short-term strategy, not a buy-and-hold strategy. Most investors do not rely solely on fundamental analysis or solely on technical analysis, but rather on a combination of the two. In this course, we focus on technical analysis. First, it may help to understand what technical analysis means. Learn More ****  https://www.investopedia.com/terms/f/fundamentals.asp?utm_source=technicalanalysis-series&utm_campaign=bouncex&utm_term=&utm_medium=email Fundamentals  SHARE     What does 'Fundamentals' mean The fundamentals include the qualitative and quantitative information that contributes to the economic well-being and the subsequent financial valuation of a company, security or currency. Analysts and investors analyze these fundamentals to develop an estimate as to whether the underlying asset is considered a worthwhile investment. For businesses, information such as revenue, earnings, assets, liabilities and growth are considered some of the fundamentals. Next Up FUNDAMENTALLY WEIGHTED INDEX MACROECONOMICS NOISE TRADER MACROECONOMIC FACTOR BREAKING DOWN 'Fundamentals' In business and economics, the fundamentals represent the basic qualities and reported information needed to analyze the health and stability of business or asset in question. This can include topics within both the macroeconomic and microeconomic disciplines that are considered standards for determining the financial values attributed to the assets. Macroeconomics and Microeconomics Macroeconomic fundamentals include topics that affect an economy at large. This can include statistics regarding unemployment, supply and demand, growth, and inflation, as well as considerations for monetary or fiscal policy and international trade. These categories can be applied to analysis of a large-scale economy as a whole or can be related to individual business activity to make changes based on macroeconomic influences. Microeconomic fundamentals focus on the activities within smaller segments of the economy, such as a particular market or sector. This can include issues of supply and demand within the specified segment, as well as the theory of firms, theory of consumers and labor issues as related to a particular industry. Fundamentals in Business By looking at the economics of a business, such as the balance sheet, the income statement, overall management and cash flow, investors are looking at a company's fundamentals, which help determine the company's health as well as its growth prospects. A company with little debt and a lot of cash is considered to have strong fundamentals. Strong fundamentals suggest that a business has a viable framework or financial structure, while those with weak fundamentals may have issues in the areas of debt obligation management, cost control or overall organizational management. A business with strong fundamentals may be more likely to survive negative events, such as economic recessions or depressions, than one with weaker fundamentals and may indicate less risk should an investor consider purchasing securities associated with the aforementioned businesses. Other Fundamentals in Economics While fundamentals are most often considered factors that relate to businesses, securities and currencies also have fundamentals. For example, interest rates, GDP growth, trade balance surplus/deficits and inflation levels are some macroeconomic factors that are considered to be fundamentals of a currency's value.Read more: Fundamentals https://www.investopedia.com/terms/f/fundamentals.asp#ixzz58Qz2TWzi  ***  Read more: Fundamentals https://www.investopedia.com/terms/f/fundamentals.asp#ixzz58Qz2TWzi Follow us: Investopedia on Facebook Follow