The difference between the two approaches comes down to what determines a stock’s value and price. Fundamental analysis considers the value of the company. This ultimately depends on the value of its assets and the profits it can generate.
Technical analysis is concerned with price action, which gives clues as to the stock’s supply and demand dynamics – which is what ultimately determines the stock price. Patterns often repeat themselves because investors often behave in the same way in the same situation. Technical analysis is concerned with price and volume data alone.
The difference between the two approaches comes down to what determines a stock’s value and price. Fundamental analysis considers the value of the company. This ultimately depends on the value of its assets and the profits it can generate.
Technical analysis is concerned with price action, which gives clues as to the stock’s supply and demand dynamics – which is what ultimately determines the stock price. Patterns often repeat themselves because investors often behave in the same way in the same situation. Technical analysis is concerned with price and volume data alone.