Technical Analysis vs Fundamental Analysis


There is a controversy in the financial world involving the usefulness of the technical analysis on one hand, and the fundamental analysis on the other hand, in the sense that there are some traders that do trade only based on technical setups, not even caring about why a certain price moves as long as it is moving, and there are other traders that trade only in light of the economic releases that are about to hit the markets and they do not have any technical analysis on that specific price whatsoever.

This chapter has the purpose of addressing this controversy, bringing the advantages and disadvantages of both approaches, trying to look at the weaknesses and the strengths each one has, and then drawing a line as to what is the best approach to be used: technical analysis, fundamental analysis, or both.

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