Technical Analysis vs Fundamental Analysis

Understand how technical and fundamental analysis answer different questions in market research.

Fundamental analysis focuses on the business: revenue, earnings, balance sheet, cash flows, valuation and industry context. Technical analysis focuses on market behaviour visible through price, volume and charts.

They are not necessarily competing methods. A learner may use fundamentals to understand what a company is and technical analysis to study how price is behaving. The key is to know the limitations of each approach.

For students

Do not memorise indicators without context. Learn why a method is used, what data it needs, what can invalidate the setup and how risk is managed. Historical examples are useful for education, but they do not guarantee future outcomes.