Glossary / Technical analysis vs fundamental analysis
Technical analysis vs fundamental analysis
Technical analysis (TA) tries to forecast price moves by studying past prices, trading volume and chart patterns. TA traders use candlestick charts, support and resistance, trend lines and indicators such as moving averages, RSI and MACD. The underlying assumption is that market psychology repeats and shows up in price action.
Fundamental analysis (FA) tries to judge an asset's value from its underlying qualities. In crypto that can mean looking at the problem a project solves, its team, token supply and unlock schedule, revenue and fees, developer activity, number of active users and on-chain data such as exchange flows.
Most experienced investors use both: fundamentals to decide what is worth owning, and technicals to decide when to buy or sell. Neither is reliable on its own in a market as volatile and sentiment-driven as crypto. Be sceptical of anyone selling "guaranteed" signals based on either method; paid signal groups on Telegram and WhatsApp are a common source of scams.
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