There are two primary methods used to analyze securities and make investment decisions: fundamental analysis and technical analysis. Fundamental analysis involves analyzing a company’s financial statements to determine the fair value of the business, while technical analysis assumes that a security’s price already reflects all publicly-available information and instead focuses on the statistical analysis of price movements.
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Technical analysis may appear complicated on the surface, but it boils down to an analysis of supply and demand in the market to determine where the price trend is headed. In other words, technical analysis attempts to understand the market sentiment behind price trends rather than analyzing a security’s fundamental attributes. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor over the long-term.
In this tutorial, you will be introduced to technical analysis and develop the foundation needed to understand more advanced concepts down the road.
Technical Analysis: The Basic Assumptions
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Trading
Debunking 8 Myths About Technical Analysis
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Investing
Technical Vs. Fundamental: Friends or Foes?
Experienced investors debate which one—fundamental or technical—provides higher returns. -
Investing
Fundamentals And Technicals: Together At Last
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Investing
Fundamental Analysis for Traders
Find out how the fundamental analysis method can be applied strategically to increase profits. -
Trading
Use Price Action Trading Strategy for Results
Bored by the fixed rules of technical and fundamental analysis? Price action trading allows you to customize your own trading strategy. -
Investing
Blending Technical and Fundamental Analysis
Find out how you can combine the best of both strategies to better understand the markets.