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One Response
Hi Dan,
Nice explanation, but I think fundamental analysis is data and technical analysis is the presentation of the data.
The chart on the trading platform is only a pictorial display of market sentiment and has nothing to do with the financial circumstances of the company. Sometimes sentiment is influenced by the company’s financial circumstances but not always.
But company fundamentals can also be displayed with a chart. Earnings, dividends, quarterly income statements, and performance. Even analysts’ ratings can be displayed using a chart.
Charts are used because it allows you to place several pieces of information side by side or overlay and compare at a glance.
The purpose of the chart is to take complex issues and make them simple.
So, they are not completely different things. In fact, they can complement each other.