A balanced understanding of the two disciplines can provide an excellent basis for a successful trading experience. As with technical analysis, there are many fundamental tools that are purposed toward early identification of trend reversals. A corporate growth rate forecast might be revised as a result of an earnings warning, or perhaps as a result of a sudden or continued decline in industry sales reports, or by association of sector move. Forecasts that are a continuation of the most recent trend and do not range very far into the future can be measured against longer term forecasts as a ratio that may give a fundamental analyst a stronger knowledge of the conditions of market valuation. An expanding triangle usually cannot sustain the pattern.
Penetration is often to the down side.
This usually means price has increased more than earnings. In a positive growth environment that could speak highly of price in the next 5 or 6 years. But it also could mean that price holds steady while earnings continue to decline. The key to the interpretation of this approach is to have a strong sense of earnings. There are many combinations of technical tools and fundamental analysis.