Technical and fundamental analysis have always been waging an internecine war –which method is better? We can definitely say that TA is easier to understand because you can visually predict the price movement by examining the price chart, drawing several important lines, overlaying several indicators, and finding certain TA patterns.
In order to make a forecast based on FA, you need to study a lot of information about the company itself – a profit and loss statement, balance sheet, cash flow statement, etc. This can take a very long time. And, nevertheless, such an analysis in comparison with a technical one can reveal a deeper understanding of all the processes taking place in the organization – a potential object of your investment.
Therefore, only the trader can decide which type of research to choose. Typically, TA is chosen by speculators and short-term traders, while FA is preferred by long-term investors. It is very important to understand which trading approach is right for you and it will immediately become clear which is better for you – fundamental analysis or technical one.