How does technical analysis differ from fundamental analysis?

Technical analysis and fundamental analysis are two key approaches in evaluating securities. Technical analysis focuses on price charts, trading volume, and historical market data to forecast future price movements. It relies on patterns, trends, and indicators like moving averages or relative strength index. On the other hand, fundamental analysis examines a company’s financial statements, business model, industry position, economic conditions, and management quality to determine its intrinsic value. While technical analysis is often used for short-term trading decisions, fundamental analysis is more suited for long-term investment strategies. Technical analysts believe all known information is already reflected in the price, whereas fundamental analysts aim to find undervalued or overvalued stocks based on financial health. Both methods can be combined for better investment decisions.