Technical vs. Fundamental Analysis: Which One to Use?
Investors often rely on two primary methods to analyze stocks: technical and fundamental analysis. Fundamental analysis focuses on a company’s financial statements, management team, industry trends, and macroeconomic conditions. It is useful for long-term investments. On the other hand, technical analysis uses price patterns, charts, and indicators like Moving Averages and RSI to predict future price movements. Traders looking for short-term profits generally prefer technical analysis, whereas long-term investors rely on fundamental analysis to make informed decisions.
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