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Types of analysis

Market Analysis


Fundamental analysts try to determine the value of the financial instruments in a market. The aim is to anticipate movements based on events and external influences, rather than to observe the graphic figures.

For example, to find the true value of an asset, fundamental analysts note the close factors that might affect the price of that asset; for example, the relationship between the financial statements, revenue forecasts, the quality of management, benefits and growth. Then, they issue a ruling on the asset, perhaps in comparison with its sector or with its peers in the market, in relation to whether at this moment it is overrated or underrated..


On the other hand, the technical analysis gets all the information needed directly from the graphics. It does not pay attention to what is happening with the components of a market, but to the patterns of movement of the market itself.

Looking at the figures formed, technical analysts can see how buyers and sellers behave. Since some graphic figures have been repeatedly seen in the passage of time, it is possible to identify them as soon as they appear. This helps to predict the possible future trend of the market.