What exactly does it signify when people say that technical analysis tells us what fundamental analysis means?
Is it correct that you can beneficially use technical analysis without fundamental analysis, but not beneficially use fundamental analysis without technical analysis? People say this, also.
Sorry if they’re basic questions but I didn’t find the answers in the School lessons (I didn’t yet read every page!).
It’s a never-ending problem. Prices move up/down because of fundamental infuences causing supply to rise/fall or demand to rise/fall.
These price changes can be interpreted through TA to confirm that what the FA says should happen is actually happening, and potentially also to gauge how strong and how urgent the fundamental influences are at this time.
TA is a key tool to use because sometimes the fundamental factors do not appear to have changed, yet price moves strongly in a given direction. To summarise (and being a bit simplistic) FA can indicate what to buy, but TA indicates when to buy it.
Technical analysis shows how markets actually respond to fundamentals in real-time. You can use technicals alone, but mixing in fundamentals gives you extra clarity.
This part definitely is true. Many people do. For example scalpers.
This part I think is also probably true. You would not trade using only fundamentals without any technicals. “Without indicators” yes, some people do of course. But I think not without other technicals which are not indicators.
I think it means that fundamentals drive the changes in the balance between buying and selling pressures that move the prices, and technical analysis shows the details of the volatility, momentum and scale and speed of price-movements which result from that, for each financial instrument that we’re looking at.
I may just have said the same thing as @tommor but in slightly different words!
I think that’s also correct, yes.
@DivaMakosh makes the good point above that technical analysis doesn’t just mean “indicators”. In forums, some people who say “technical analysis” are actually referring only to indicators, but actually there’s a lot more to it than just those.
Technical analysis shows how the market is reacting to fundamentals. Fundamentals tell you what should happen, but technicals show if it is happening.
You can trade with just technicals, especially short term. But without reading price action, fundamentals alone make timing tough. Better to use both, fundamentals for bias, technicals for timing.