Fundamental analysis is a method of evaluation by attempting to measure intrinsic value. Fundamental analysts study everything from the overall economy; current and future economic conditions to the financial conditions and future expectations along with what may be factored into the market.
Technical analysis is the evaluation of price or future price movements by studying statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure an intrinsic value but instead use charts to identify patterns and trends that may suggest future movements.
Fundamental and Technical analysis are on completely opposite sides of the spectrum. Which strategy works best is always debated, and many volumes of textbooks have been written on both of these methods. So, do some reading and decide for yourself which strategy works best with your investment philosophy.
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