About technical stock analysis
Technical analysis is a way to evaluate securities and market psychology by analyzing statistics generated by historical prices and volume. Technical analysis is not an attempt to measure a security's intrinsic value; but instead to recognize trends and indicators in the price chart that will determine a stock's future development.
Over the past several year technical analysis has become increasingly popular, as more and more believe that the historical development gives a strong indication of future development. Even in traditional fundamental analysis, you have always studied the past performance of companies - and by comparing data from the past - tried to determine future growth. The difference lies within that technical analysis believes that securities move in very predictable trends.
About fundamental stock analysis
Fundamental analysis is the research and examination of a
corporation's financial statements and balance sheets to predict
the future price movements of their securities. Fundamental
analysis studies market prices in the light of the underlying
business proposition and financial situation. By assessing a
corporation's prospects, fundamental analysis can evaluate whether
a security is overvalued or undervalued.