Yes. Generally fundamental analysis works if the investment horizon is a long term. If the investment horizon is a short term generally works the technical analysis.

It could be one factor in decision making, but cannot be the only one.

Of course. Nobody knows the future.

Prof. Prokopowicz,

By the Lucas critique for the Economic equilibrium and by Heisenberg paradox for the systems equilibrium fundamental analysis cannot work fully unless technical analysis has reached steady state of causality and therefore accuracy. Hence, the ordering is Econophysically quite clear. (Mallick (1993, 2014), Mallick, Hamburger & Mallick (2016, 2017, 2018)).

S.K.Mallick,

for S.K.Mallick, S.Raychaudhury & S. Mallick and others,

of The RHMHM School,

USA, Japan, India

I do concur to Dr.Morasan argument succinctly stated above, however as a technical investor, the adoption of both methodical approach in market analysis that is 'Fundamental' and 'Technical', becomes relevant as a back testing or triangulation to confirm decision of investment action. And that serve to be the best risk management approach in a highly liquid market.

I suppose it is easy to predict the movement of planets, but it is very very difficult to predict the future prospects of a company. Fundamental Analysis helps an investor in predicting the future prospects of a company on the basis of nature of the business and the complex environment in which the company is/will be operating. It is really very important to track the changing fundamentals and business landscape to be successful in earning through investing.

Both are two different approaches and an investor can use a judicious mix of both if interested.

The two approaches are like both the eyes. We can see objects with one eye but a better vision could be obtained when combining both.

For example, a good time to accumulate a stock can be in a fundamentally good company where there is some (if not a lot) of margin of safety when the stock's trend is turning from bearish to bullish.

Things like these often depend on the time frame for which the investor is investing.

Technical Analysis helps an investor to time their entries. Whilst fundamental analysis might help you to get a bias (or understand the direction of the market), technical analysis will obviously help you to enter the trade. You certainly do not want to enter a trade at a bad price due to things like retracements in the markets.

Having said this, i would like to point out that technical analysis assumes that every fundamental data for a security is already reflected in the price, therefore the price discounts everything. This means you do not need to follow every single bit of fundamental data as the price reflects the confidence level in a security (sentiment). Therefore, if for example, the US dollar is weak, studying the price charts will simply be enough to point this out without studying mountains of textbooks on fundamental analysis as you will clearly notice a downtrend (series of lower highs and lower lows).