Fundamental vs Technical Analysis
Fundamental analysis asks what a business may be worth; technical analysis studies price, volume and trend. They answer different questions and can be used together.
| Measure | Fundamental | Technical |
|---|---|---|
| Primary data | Financial statements and economics | Price and volume |
| Typical horizon | Months to years | Minutes to months |
| Core question | What is the business worth? | What is the market doing? |
| Main limitation | Value may take time to emerge | Signals can whipsaw in ranges |