Throughout your journey as an aspiring trader, you will find strong advocates for each type of analysis.

Whereas technical analysis (TA) involves poring over charts to identify patterns or trends.

Fundamental analysis (FA) involves poring over economic data reports and news headlines.


Hardcore traders in the technical analysis camp scream, “Fundamental analysis doesn’t matter!”

FU to FA!

It’s already embedded in the price, which you can see on the charts!

Hardcore traders in the fundamental analysis camp scream, “Technical analysis is just a bunch of imaginary lines and drawings! Useless fake voodoo magic! TA is BS!

While folks in the sentiment analysis camp are observing the two camps fight and monitoring their level of sentiments toward each other!

Complementary Analysis

Fortunately, the different market analyses complement each other.

Even hardcore technical traders may find useful fundamental nuggets that can help with their technical analysis. And vice versa.

In real-world markets, prices are constantly changing, and usually develop trends. Those changes in prices can affect fundamentals.

This means that trends in prices affect fundamentals just as fundamentals affect prices.

And as you’ll find out in later lessons, identifying trends is a huge part of technical analysis.

Do not be fooled by these one-sided extremists! One is not better than the other…they are all just different ways to look at the market.

You should trade based on the type of analysis you are most comfortable and profitable with.