Technical vs. Fundamental Analysis: Which One Should You Use? technical and fundamental analysis combining technical and fundamental analysis
📊 Keywords: Technical analysis vs fundamental analysis, stock market analysis, trading strategies
Introduction:
Two primary methods used to analyze stocks are fundamental analysis and technical analysis. But which one should you rely on? Let’s explore the differences.
Fundamental Analysis – Evaluating a company’s financial health based on:
✔ Revenue & Earnings – Is the company profitable?
✔ Debt & Assets – Is the company financially stable?
✔ Industry Trends – Does the company have growth potential?
Technical Analysis – Studying stock price movements through charts:
✔ Candlestick Patterns – Identifying trends using price movements.
✔ Indicators – Using RSI, MACD, Bollinger Bands to predict trends.
✔ Support & Resistance – Identifying buying and selling zones.
Which One Should You Use?
📌 If you’re a long-term investor, fundamental analysis is key.
📌 If you’re a short-term trader, technical analysis is more useful.
Conclusion:
Both strategies are useful in different ways. For the best results, combine both fundamental and technical analysis.
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