Fundamental Analysis vs Technical Analysis

The difference between fundamental analysis and technical analysis is best summarized by the note below:

The fundamental analysis guides on what stock to buy based on its financials such as Price/Earnings (P/E) ratio, management of the company, quality of its earnings as well as its (long term vs short term) growth perspective.

In contrast, the technical analysis provides the timeline of the stock i,e when to buy it based on the trend analysis including its relative strength aided by Risk/Return Analysis.

Theoretically, stock purchases would be based on financial fundamentals. However, In real world, emotions cause many investors to react (overreact?) leading to buying and selling decisions. Think about the Herding!!
In fact, TA (Technical Analysis) measures emotions of investors. Analysing the patterns can provide an unbiased information of the herding. TA helps to look at future events – peaks and valleys – and tries to avoid quagmires.

Fundamental analysis provides benefit regarding value of company whereas Technical analysis provides benefit regarding price movement.

Financial information and emotions both play a role in pricing securities

Both these approaches compliment each other!!. When choosing between two securities that appear to be equally sound bets, let technical analysis be the determining criteria.