Quick Finance Tip - Technical Analysis vs. Fundamental Analysis

1. Technical Analysis is derived from price and volume data, where Fundamental Analysis includes data external to the market, to help predict security price movements;
2. Technical Analysis has more concrete data (price and volume), where Fundamental Analysis data is a result of estimates and assumptions from line items in financial statements;
3. Technical Analysis seeks to project the level at which a financial instruments will trade, where Fundamental Analysis is a more theoretical approach that tries to determine the intrinsic value.
4. Technical Analysis in some cases is more helpful than Fundamental Analysis, for instance, in cases with fraud. Fundamental Analysis would have induced investors to favorably view a security, where Technical Analysis would have waved red flags with high frequency trading. 

With all that said, although we favor Fundamental Analysis, Technical Analysis is a very valid method for investors.