Difference Between Fundamental And Technical Analysis

You are here:
< Back to Knowledge base

 Fundamental Analysis:

  •   It analyses all the factors that can affect the stock price of a company in future like financial, management, industry etc.
  •   Fundamental approach is used for long term investments.
  •   It gathers data from financial statements of the company along with other economic news sources.
  •   It also uses various fundamental indicators for example, PE RATIO, PB ratio, Debt or equity ratio.

Technical Analysis:

  •  It reads the past charts, patterns, and trends of the stock to predict its future price movement.
  •  Technical approach is used for short term investments.
  •  It gathers data from the stock charts.
  •  Various technical indicators that are commonly used are MACD, Simple Moving Average, EMA, RSI etc