Technical and Fundamental analysis are the two most commonly used tools to determining whether an investment is potentially attractive or not. One of the greatest misconception about Technical and Fundamental Analysis is the notion of idea that one is better than the other. This is relatively untrue because neither of the two is meant to replace the other on a general sense.
In truth, a trader should not employ their strategy solely based on either the one or the other. A combination of both is the best practice. Depending on your goal, Fundamental Analysis takes into account the basic aspect of a company’s financial strength and compares them with it’s competitor.