But in general, each strategy relies primarily on either fundamental analysis or technical analysis. Fundamental analysis is an examination of the economic, industry and company-specific factors related to price, profitability and ultimately the future returns an investor in a particular stock can expect. Technical analysis is an examination of historical prices and related information such as trading volume to try to predict future stock prices based on the past. Again, you don't have to use just fundamental or just technical analysis but can opt for a combination of the two. Fundamental analysis can be broken down further into growth investing and value investing.
Technical analysis includes such approaches as moving averages and relative momentum.
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