If it helps, your question closely matches what I did in my doctoral thesis. I found the main problem was lack of information on which to base fundamental analysis and prediction estimates. I also found case study methodology worked better than other quantitative methods. A few years after the doctorate was finished the chapter 5 case studies continued to perform along the lines expected, which goes a little way towards validating the approach.

An abstract and link to the university's thesis repository is below where it can be freely downloaded:

Thesis An analytical tool to aid the reflective selection of equity...

There are many problems faced by the investor while making investment decision based on fundamental or technical analysis. Both the analysis are so vast that it is very difficult to understand the level to which the analysis should be applied. In Technical analysis there are many indicators which may give contradictory results.

I think, nowadays, machine learning techniques are popular in finance industry. Prediction with neural networks and comparing the results with time series forecasting techniques is innovative subject. Also ; According to me, investigating the factors that effects particular financial products is a good research subject..

The technical analyst's task is to examine the behavior of the market and its reflection on prices. To evaluate the roles of supply and demand in the market and try to recognize their power. This is the biggest helper of price charts and technical indicators for analysis. It tries to understand which direction the balance is developing by constantly examining these graphs within the basic rules of technical analysis. This requires experience, evaluation skills and a broad perspective.

The fundamental and Technical analysis of a market behaviour, is hinged on the predictive power of data. The reaction of the stock prices to various factors that at likely to change the reactions of the investors. The readily availability of these types of information are luxury to developing market and to some extent emerging markets. As these results are pushed unto the market and recent advancement in computer based financial mathematics, analytical results and conclusions that can help investment decisions can be obtained easily. We shall continue to count on the self regulatory ability of the operators to furnish the markets with these data and information required to make the capital market efficient.

Fundamental analysis can be used for long investments, while technical analysis for short investment. It depends on the behaviour of the market participants. In kuwait for example most of the traders using technical analysis. Honestly, i dont believe on the technical analysis. Traders repeating thier mistakes, therefore by using technical analysis you may get some benefit.

analyzes are useful studies. however, reading the markets and implementing the analyzes will yield more successful results. no work under economic conditions alone has beneficial consequences

Dear Colleagues and Friends from RG,

I propose the following proposal for a research topic in this area:

Improving fundamental analysis through the use of Business Intelligence.

In recent years, fundamental analyzes of the economic and financial situation of economic entities, valuation of securities, valuation of currencies and other assets listed on capital markets have been improved through the use of Business Intelligence analytical platforms. Currently, technologies for the advanced processing of Big Data Analytics large data sets are used to improve research processes in the market, competitive, business, etc. environment of business entities, including potential business partners and issuers of securities.

On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that Business Intelligence analytics (and also based on Big Data Analytics) can be helpful in the fundamental analysis process and in making investment decisions. Below I have described the key determinants confirming the formulated research thesis. To the above discussion I would like to add the following conclusion formulated as a summary of my previous considerations on this topic: The role of Business Intelligence in the process of fundamental analysis and making investment decisions. The above discussion inspired me to formulate the following question:

What is the role of Business Intelligence in the process of fundamental analysis and making investment decisions?

In my opinion, fundamental analysis is useful when making investment decisions. However, it varies depending on the type of investor. Individual investors usually do not use fundamental analysis due to the lack of adequate knowledge and / or time that should be devoted to analyzing large data sets, calculating financial ratios, observing the current economic and financial situation of issuers of securities and the environment of companies and enterprises in which they operate. Individual investors use technical analysis to a greater extent, since it is not necessary to have specialized knowledge regarding the methodology of conducting financial analysis of companies issuing securities. In addition, computer programs that are also available to individual investors are used to carry out technical analysis and there are no high costs involved. In addition, some individual investors use the ready results of financial analyzes published by Brokerage Houses and available in the Prospectus, which are developed by Brokerage Houses in the event of issue of shares. On the other hand, Investment Advisors managing investment funds are obliged to carry out a fundamental analysis of companies that can be selected for the investment portfolio in a specific investment fund. In addition, institutional investment funds have the necessary instruments to carry out fundamental analysis.

Fundamental analysis is the basis for making investment decisions for potential transactions in various financial markets, including investments in securities listed on stock exchanges. Many investors operating on capital markets add technical analysis to fundamental analysis by examining the development of valuation charts of specific securities or other instruments valued on the stock exchange market or other financial markets. At present, the dominant opinion is that both fundamental analysis and technical analysis together are basic research methods for verifying available economic and financial data, market data and developments on the stock exchange market, whose basic function is to provide necessary information for the purpose of making decisions on the issue investing in securities.

Fundamental analysis is more fully used by investment funds and investment banks operating on financial markets, including those investing in securities. Institutional investors enrich the fundamental analysis by using technical analysis before making investment decisions. Individual investors usually use technical analysis to a greater extent, and less often use fundamental analysis, because in order to carry it out it is necessary to analyze a lot of information about companies issuing securities, examining their economic and financial situation, markets in which they operate and a lot of macroeconomic data describing the state of entire economies in which the surveyed companies operate.

In recent years, the importance of studying the correlation between the stock market valuation of securities (shares, bonds, etc.) and the economic and financial situation of economic entities is growing, as there are more and more anomalies and speculation on capital markets that may reduce these correlations. The significance of researching this issue is growing especially in the situation when on specific stock markets the valuations of specific assets and financial instruments are less and less related to economic foundations and the importance of speculation increases. When this type of correlation between the stock market valuation and the economic and financial situation of economic entities increases, then a financial and / or economic crisis may appear. This type of situation of increasing speculative factors on the stock exchanges and commodity and commodity markets appeared in the years 2006–2008 and contributed to the global financial crisis in 2008.

In my opinion, it is interesting to examine the possibility of using Business Intelligence analytics in control, accounting auditing and verification of financial information contained in financial reporting of capital companies. Business Intelligence can be helpful in auditing the financial statements of limited companies and other companies providing full accounting and reporting. In this way, Business Intelligence analytics can facilitate the diagnosis of financial fraud, counterfeit financial data and the detection of creative accounting because the development of Business Intelligence analytics platforms is based on the use of new information technologies and advanced processing of large amounts of economic and financial data describing the functioning of business entities and the market environment, industry , competitive, etc. in which specific, examined entities operate.

The development of accounting science and financial reporting is correlated with technological progress in this respect, i.e. it should take into account the development of IT applications that are commonly used in accounting and financial reporting departments in business entities. In addition, in recent years instrumentalization, standardization and computerization of accounting and auditing of financial statements as well as conducting economic, financial, indicator, fundamental, etc. analyzes supporting reporting processes have been developing rapidly. In addition, computerized analytics is also developing regarding the processing of data generated, among others, in accounting systems on Business Intelligence platforms. Analyzes carried out in the cloud computing with the use of Business Intelligence based on data collected in Big Data database systems support the processes of financial management and management of all business activities conducted by a specific company or financial, public institution, etc.

In view of the above, Business Intelligence analytics applications built by specialized IT companies can facilitate accounting and financial reporting of enterprises, as well as auditing financial statements and thus diagnosing financial fraud, fake financial data and detecting creative accounting because the development of analytical platforms is determined by the progress of information technology, making it possible is objective, multi-criteria analysis of large data sets.

Currently, the development of Business Intelligence analytics platforms is based on the use of new information technologies and advanced processing of large amounts of economic and financial data describing the functioning of business entities and the market, industry, competitive environment, etc. in which specific, examined business entities operate. Because the amount of data describing the functioning of a business entity and its environment is constantly growing, so without the support of Business Intelligence analytics and analyzes based on data collected in Big Data database systems, in the cloud computing, etc., conducting economic analyzes would be much more difficult, cost-intensive and time-consuming. In addition, the instrumentalization and standardization of accounting and audit processes of financial statements and economic analyzes through the use of modern IT applications increases the level of objectivity of analyzes and reduces the operational risk of human capital associated with the possibility of making mistakes or subjective assessments of the results of analyzes carried out by the personnel involved in these analyzes.

Any economic, financial, market, stock market, etc. indicator may be relevant to the needs of fundamental and technical analysis carried out for the purpose of making investment decisions investing in securities and other financial instruments if a significant proportion of investors, shareholders, participants of a particular market takes into account a specific factor , indicator. On the other hand, some of the indicators and complex indicator models are more taken into account by investors of a specific sub-segment of a specific stock market, specific type of financial instrument, specific type of stock market, etc., therefore, this is not always the same level of materiality and composition of economic, financial, market, stock exchange, etc. indices necessary to perform a fundamental and technical analysis in a situation of comparison of different stock markets, various financial transactions carried out in individual countries.

However, in connection with the development of new computerized technologies for advanced processing of large sets of information, new questions have recently appeared in the issues of fundamental and technical analyzes in the context of investment decisions made for financial and investment transactions carried out on capital markets. The current technological revolution referred to as Industry 4.0 is determined by the development of the following advanced information processing technologies: Big Data database technologies, cloud computing, machine learning, Internet of Things, artificial intelligence, Business Intelligence and other advanced technologies of Data Mining. Some of the advanced information processing technologies typical of the current technological revolution in Industry 4.0 are already being used to improve analytical processes in various fields of knowledge. One of these areas is the issue of economic and financial analyzes, the purpose of which is to diagnose the situation of a specific enterprise, financial institution, issuer of securities or other economic entity.

The valuation of innovative company brands and innovative products at an early stage of development is usually based on comparative and / or replacement models if there are direct competitors on the market. This is usually a simplified formula for fundamental analysis. If the company being valued is an issuer of securities that are market-priced on the stock exchange, then this valuation is additional information useful in the context of concluding specific financial transactions between contractors, investors, shareholders, etc. The most difficult is the valuation of innovative brands of companies and innovative products on the first stage of development, i.e. when a product or service offer is introduced to the market and the innovative company has a short history of functioning on the market and there are no direct competitors. The valuation models created then should be based on a limited number of economic indicators that do not require financial information, which is normally included in the financial statements.

Therefore, I believe that Business Intelligence (and also based on Big Data Analytics) can be helpful in the process of fundamental analysis and in the area of making investment decisions.

Do you agree with me on the above matter?

In view of the above, in order to more fully identify the above issues, it is necessary to conduct research that will facilitate the formulation of answers to the following questions:

- Do the results of analyzes carried out using Big Data database technologies and Business Intelligence analytics make it possible to improve the precision of economic and financial analyzes as well as other analyzes of the type of fundamental analysis and other analyzes concerning the study of economic efficiency, economic and financial situation, valuation of assets, determination of development prospects of enterprises and enable the improvement of credit risk management processes?

- Is it possible to improve the processes of researching economic efficiency, economic and financial situation, valuation of assets, determining perspectives for the development of enterprises, etc. as a result of using Big Data database technologies and Business Intelligence analytics for fundamental analysis?

- Do the results of analyzes carried out using Big Data database technologies and Business Intelligence analytics make it possible to improve the precision of analyzes and increase the likelihood of occurrence in the field of prediction, forecast phenomena and economic processes as part of fundamental analyzes?

- Which indicator model and / or composition of economic, financial, market, stock exchange, etc. indices necessary to carry out the fundamental and technical analysis carried out for the purpose of making investment decisions of investing in securities and other instruments of stock exchange markets and other financial market segments you consider the most universal and adequate to the current economic situation of the surveyed business entities' environment?

- Are Big Data database technologies already being used to improve fundamental and technical analysis for capital companies whose securities issued by these companies are traded on the stock exchange market?

- What kind of analysis of economic and other data provides better knowledge for investing in securities listed on a stock exchange?

- Which analysis, i.e. fundamental or technical analysis, provides better knowledge for investing in securities listed on the stock exchange?

- In your opinion, thanks to which analysis, i.e. fundamental or technical analysis, do investors achieve the best results in investing, the highest return on investment in securities listed on the stock exchange?

- Which investment strategies are the most effective? Are the most effective investment strategies based on a fundamental or technical analysis or maybe a specific combination of both types of analysis?

- Which analysis is more important for investors operating on the securities markets? Do you think technical or fundamental analysis is more important for making investment decisions, for example regarding investing in securities valued on stock exchanges?

- Why is the importance of analyzing and conducting research on the correlation between stock market valuation of securities (shares, bonds, etc.) and the economic and financial situation of economic entities growing?

- What is the role of Business Intelligence in the process of fundamental analysis and making investment decisions?

- What do you think about this topic?

- What is your opinion on this topic?

I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal. I invite you to cooperation.

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Dariusz Prokopowicz

interesting..

Dear Christopher C Kelly, Pardeep Kumar, Emin Başar Baylan, Abdurrahman Olgun, Ifeanyi Nwanna, Sadeq Abul, Salameh A. Mjlae, Thank you very much for participating in this discussion and for a substantive, constructive reply. A very good answer on this topic. Thank you for the information provided and the link to interesting data in the above-mentioned issues. Thank you for the proposed interesting issues in the field Fundamental and technical analysis carried out for the purpose of making investing decisions.

Thank you very much for the sent suggestions of interesting topics, research issues, etc. related to this issue. This discussion confirms the importance of the above-mentioned issues and the legitimacy of developing research on this subject. I am very glad that the discussion on this important topic is developing. Best wishes,

Have a nice day,

Dariusz Prokopowicz

Thank you Dariuz for your informative contributions. I agree with your comments

Dear Sadeq Abul, Thank you very much for the kind words and vice versa. Best wishes, Have a nice day,

Dariusz Prokopowicz

Overconfidence... Ady, S. U., Mulyaningtyas, A., & Farida, I. (2019, September). Overconfidence: Technical Analysis in Trading, Investment or Gambling?. In CIFET 2019: Proceedings of the 1st Conference on Islamic Finance and Technology, CIFET, 21 September, Sidoarjo, East Java, Indonesia (p. 21). European Alliance for Innovation.

reliability... Employing traditional methods like fundamental and technical analysis may not ensure the reliability of the prediction ... Sharma, A., Bhuriya, D., & Singh, U. (2017, April). Survey of stock market prediction using machine learning approach. In 2017 International conference of Electronics, Communication and Aerospace Technology (ICECA) (Vol. 2, pp. 506-509). IEEE.

financial literacy and financial risk tolerance... Ahmed, Z., Noreen, U., Ramakrishnan, S. A., & Abdullah, D. F. B. (2021). What explains the investment decision-making behaviour? The role of financial literacy and financial risk tolerance. Afro-Asian Journal of Finance and Accounting, 11(1), 1-19.

Dear D A Gayan Nayanajith,

Yes, you raised an important point. Thank you for your participation and your valuable substantial contribution to our discussion. I drew attention to the key issues of the issue: Fundamental and technical analysis carried out for the purpose of making invest. decisions.

Regards,

Dariusz Prokopowicz

Those are my researches in technical analysis with modeling while taking into consideration the scientific method. The first research is about correcting the concept and calculation of momentum in technical analysis.

Thesis Linear Momentum and Performance Indicators

Thesis Cyclical Characteristics of Performance Indicators

Article Time Cycle Oscillators

Article Wave Period Zone Oscillator

Dear Akram Elsherbini,

Thank you very much for interesting articles and research theses on the issues of research in the field of technical analysis with modeling taking into account the scientific method, including correction of the concept and calculation of momentum in technical analysis. Very interesting and topical research topics.

Best regards,

Dariusz Prokopowicz