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Fundamental Analysis

Fundamental analysts try to determine the value of financial instruments within a market. The objective is to anticipate the movements based on external events and influences, instead of observing the graphic figures.

For example, to find the true value of an asset, fundamental analysts observe the nearby factors that may affect the price of that asset.

For example, the relationship between financial statements, revenue forecasts, quality of management, benefits and growth.

Then, they issue a judgment on the asset, perhaps in comparison with their sector or with their market peers, in relation to whether they are currently overvalued or undervalued.

Technical Analysis

On the other hand, the technical analysis obtains all the information you need directly from the graphs. It does not focus on what is happening with the components of a market, but on the patterns of movement of the market itself.

By examining the figures that are formed, technical analysts can see how buyers and sellers behave. Since some graphic figures have been seen repeatedly over time, it is possible to identify them as soon as they appear.

This helps to predict the possible future trend of the market.