Is Fundamental Analysis Better than Technical Analysis?

[Goldynn]

This is a lifelong debate amongst traders, and each team has its reasons why the vehemently defend what they believe in.

Technical analysis mainly focuses on the price and price action, reading charts and using indicators and tools to predict what will happen next. It requires monitoring past price action and patterns and using it to forecast what happens next.

Fundamental analysis relies mainly on the intrinsic value of the coins or tokens and prevalent market ams economic conditions and their impact on the price.

Ultimately, most traders agree that both are equally important, even if they have their flaws especially if you want to take trading as a means of income for a long time.

 

[Light]

The approach and objectives of the investor will determine whether fundamental analysis or technical analysis is more effective. Technical analysis explores price patterns and market movements, whereas fundamental analysis examines a company's financial stability and underlying value. Combining the two methods can provide a complete picture. While technical analysis could work for short-term traders, fundamental analysis is preferred for long-term investing. Successful investors frequently use elements of both techniques to make well-informed choices.