There are two broad ways to study a market: technical analysis and fundamental analysis. Neither is ‘better’, they answer different questions, and many traders use both.
Technical analysis
Technical analysis studies price itself, charts, trends, levels and indicators, on the idea that price reflects everything known and tends to move in patterns. It’s about the when: timing entries and exits.
Fundamental analysis
Fundamental analysis studies the forces behind price, economic data, interest rates, company earnings, news and events. It’s about the why: what should drive a market’s value over time.
How they compare
- Technical: focuses on charts and timing; useful across all timeframes.
- Fundamental: focuses on drivers and value; often a longer-term view.
- Technical answers ‘when’; fundamental answers ‘why’.
- Many traders combine them, use fundamentals for direction, technicals for timing.
Which should you learn?
Start with whichever fits how you think, then add the other. A common approach is to use fundamentals to decide what and why, and technicals to decide when. Both are covered across the Bharat Sky Academy.
- Technical analysis studies price, charts and timing
- Fundamental analysis studies the drivers, data, news and value
- Technical answers ‘when’, fundamental answers ‘why’
- Many traders combine the two
This guide is educational only and is not investment advice or a promise of profit. Trading involves significant risk and may result in the loss of your capital.