Comparative analysis between the fundamental and technical analysis of stocks

Like any field in investing and trading, you should have a systematic approach to ensure your edge andgenerate continued profit. Broadly, two schools of thought in financial markets and two main strategies exist: fundamentaland technical analysis. Fundamental analysis and technical analysis differ substantially in terms of their workings andexecution, time horizon employed, tools employed, and goals. Such differences give rise to specific strengths andweaknesses of each of the analyses. Fundamental and technical analysis is also the subject of critical reviews by theacademic and scientific community. Many of these reviews concern the methods of their application, i.e., the possibilityof combining the two analyses and using them complementarily to utilize their strengths and advantages fully.Whengiven an overview of fundamental and technical analysis, we can see that fundamental analysis seeks to determine theintrinsic value of a stock by analyzing economic variables and company performance, while technical analysis looks atprice movements and patterns to predict the price of a stock or cryptocurrency over a certain period of time in the future.pays attention both analyzes have their strengths and weaknesses, and there is ongoing debate about whether they canbe combined to take advantage of their strengths.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-02-07
DOI
https://doi.org/10.5281/zenodo.14871594
Primary Topic
Stock Market Forecasting Methods
Type
article
Field-Weighted Citation Impact
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article

Comparative analysis between the fundamental and technical analysis of stocks

Zenodo (CERN European Organization for Nuclear Research)
Stock Market Forecasting Methods
article

Comparative analysis between the fundamental and technical analysis of stocks

article en

Abstract

Like any field in investing and trading, you should have a systematic approach to ensure your edge andgenerate continued profit. Broadly, two schools of thought in financial markets and two main strategies exist: fundamentaland technical analysis. Fundamental analysis and technical analysis differ substantially in terms of their workings andexecution, time horizon employed, tools employed, and goals. Such differences give rise to specific strengths andweaknesses of each of the analyses. Fundamental and technical analysis is also the subject of critical reviews by theacademic and scientific community. Many of these reviews concern the methods of their application, i.e., the possibilityof combining the two analyses and using them complementarily to utilize their strengths and advantages fully.Whengiven an overview of fundamental and technical analysis, we can see that fundamental analysis seeks to determine theintrinsic value of a stock by analyzing economic variables and company performance, while technical analysis looks atprice movements and patterns to predict the price of a stock or cryptocurrency over a certain period of time in the future.pays attention both analyzes have their strengths and weaknesses, and there is ongoing debate about whether they canbe combined to take advantage of their strengths.

Zenodo (CERN European Organization for Nuclear Research)
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Stock Market Forecasting Methods
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