what are the main difference between fundamental and technical analysis?

What are fundamental analysis and how we can use those in trading?

Translate to English Show original

tjavedkhattak avatar

Fundamental analysis refers to the analysing the fundamentals of economy of the specific currency and also analysing the effects of the economic indicators on the trading instrument that u r trading...
Technicals is strictly concerned with the statistical tools to trading...It see the historical trends and forecast the future outcome on the basis of it..Most of the technical indicators are lagging in nature.

orto leave comments

Answers: 4

Best Answer

Fundamental and technical analysis are opposite sides of the same coin.

Gross domestic product, housing indexes, public sector net borrowing, manufacturing PMI, markit PMI composites, bank quarterly reports, trade balances, foreign investment, unemployment data, new home sales, consumer price indexes, interest rates, and non-farm payrolls are just some of the important characteristics of fundamental analysis.

Technical analysis on the other hand is not concerned with these news reports. Technical traders utilize a variety of charts and indicators including price, trend following, trend confirmation, overbought/oversold, and profit taking tools.

Translate to English Show original
21 Sep. 2015 by

orto leave comments

In terms of foreign exchange market, fundamental analysis mainly looks at performance of the relevant economies, as represented by various macroeconomic indicators, such as GDP, unemployment, interest rate and inflation. Conversely, technical analysis posits that all fundamental factors are already priced in by the market and therefore takes into account only historical market data, such as price and volume.

Translate to English Show original
17 Mar. 2014 by

orto leave comments

To sum it up, fundamental is all about news and everything that could affect a currency, stock, .. Technical is all about * patterns, etc... But all has been well explained in the first answer, just summed it up and made it easier to understand.

Translate to English Show original
11 Jan. 2015 by

orto leave comments

for fundamental:
1) value calculated using various economic factors
2) data are from economic reports,news,reports,events,statistics
3) we buy when price is below intrinsic value
4) good for long term positions

for technical:

1) we use price movement and patterns on charts to predict future price movement
2) data are from charts
3) we buy (sold) when traders see a price formation that has a high probability of moving into profit
4) often used by short term trader

Translate to English Show original
3 Feb. 2016 by

orto leave comments
Please log in or register to post answer.