DIFFERENTIATION

Fundamental analysis is the one that studies about the company and its all aspects like management policy, assets, liabilities, net profit, loans, employee treatment, market strategies etc. It is basically a qualitative and quantitative analysis of a company. Technical analysis is the one that studies about the market situation. It doesn’t bother about the quality of the company. Its focus is only on demand and supply of the stocks.
Fundamental analysis the most complete and powerful one than the technical analysis. It covers all the aspects of an analysis and if done right, results will be thorough and most reliable.
But fundamental analysis needs more data than available. Only people who has the inside information of a company , long time to do and skills to process various types of data at the same time. But most of traders like us cannot avail such information and we definitely don’t have the time and skills to do the fundamental analysis. We get satisfied with available data and do the analysis partly and start predicting the market, which often goes wrong.
Technical analysis needs only two data and it requires only a short time to do the analysis. Traders can do it personally without depending on anybody and trade accordingly. The predictions of technical analysis when done right, gives reliable results.
Technical analysis cannot be used for long time predictions. It does not cover the performance of the company, which can influence the market price.Due to a sudden news, the volume of the stocks may fluctuate (Sellers may hesitate to sell). It cannot be foreseen in Technical analysis.
Technical Analysis uses charts like line charts, bar charts and candlestick charts.