Technical analysis:
* Focus on historical data: It relies on studying and analyzing past price movements, patterns and shapes.
* Tools used: charts, technical indicators, support and resistance lines, etc.
* Objective: To predict future price trends based on past data.
* Time frame: Generally short to medium term.
* Advantages: Flexibility, ease of use, can be applied to any tradable asset.
* Disadvantages: May not take into account fundamental factors affecting price, may be affected by emotions and market noise.
Fundamental analysis:
* Focus on fundamentals: Examines the economic, financial, and corporate factors that affect the value of an asset.
* Tools used: Financial reports, financial ratio analysis, industry analysis, economic news.
* Objective: To assess the true value of an asset and determine whether it is overvalued or undervalued.
* Time frame: Generally long term.
* Advantages: Provides a deeper look into the true value of an asset, less affected by short-term emotions.
* Disadvantages: Requires more time and effort to analyze, may be complex for beginners.
Comparative table:
| Standard | Technical Analysis | Fundamental Analysis |
| Focus | Historical Data | Fundamentals |
| Tools | Charts, Indicators | Financial Reports, Ratio Analysis |
| Objective | Predicting price trends | Valuing the true value |
| Time frame | Short and medium term | Long term |
| Advantages | Flexibility, Ease | Deeper insight, Less emotional |
| Disadvantages | Does not take into account basic factors, is affected by emotions | Requires more time and effort |
Which is better?
* The answer depends on the trading style and the investor's goal:
* Short term trading: Technical analysis is preferred.
* Long-term investment: Fundamental analysis is preferred.
* Professional traders: often combine both methods to achieve the best results.
Note: This explanation is just a general introduction, there are many complex details in both technical analysis and fundamental analysis.