Technical vs Fundamental Analysis
Technical Analysis
Studies price movements and patterns to predict future price direction.
Key Components:
- Chart patterns
- Technical indicators
- Volume analysis
- Support/resistance levels
Best For:
- Short-term trading
- Entry/exit timing
- Trend identification
Fundamental Analysis
Evaluates intrinsic value based on project fundamentals.
Key Metrics:
- Team and development
- Technology and innovation
- Tokenomics
- Market adoption
- Competition
Best For:
- Long-term investing
- Project selection
- Value assessment
Combining Both Approaches
Use Fundamental Analysis to:
- Select which assets to invest in
- Understand long-term potential
- Assess project viability
Use Technical Analysis to:
- Time your entries and exits
- Set stop-loss levels
- Identify trends
Practical Application
- Screen projects fundamentally
- Build watchlist of quality assets
- Use technicals for timing
- Manage positions with both
Conclusion
The most successful investors combine both analytical approaches for comprehensive investment decisions.
