This is a question that has been debated for years. Fundamental analyzers feel the only way to learn the heartbeat of a stock is to examine the financial health of the company and it's leadership team. There are three major financial statement reports that are considered paramount when considering a publicly traded company. They are the balance sheet, income statement, and statement of cash flows. While these reports are important there's so much more financial data that can be useful. On the other hand, you have traders who love Technical Analysis. They identify trading opportunities using price trends and patterns on candlestick charts. Utilizing past trading activity and price changes of a security can be valuable indicators of it's future price movements. There are indicators like exponential moving averages, Bollinger Bands, and Stochastics to name a few that can help enhance chart reading.
Which trader are you? Let me know in the comments.
