Technical analysis focuses on price movements and trading volumes. It uses charts, trends, and indicators such as moving averages or the Relative Strength Index (RSI) to study market behavior. Traders using this approach believe that all necessary information is already reflected in the asset’s price. The emphasis is on short- to medium-term patterns, attempting to forecast future movements based on historical data and market psychology.

Fundamental analysis examines the underlying value of an asset by evaluating economic indicators, financial statements, industry conditions, and overall market health. This method involves assessing revenue, earnings, management quality, and macroeconomic factors to determine if an asset is overvalued or undervalued. It is generally used for long-term decisions, aiming to understand the true worth of a company or security, rather than short-term market fluctuations.