Stock Market Math

Chapter 12 Combined Testing: Merging Price and Financial Tests

The debate about whether fundamental or technical analysis is better or more reliable often polarizes opinions. But the choice between one over the other is only one possible decision. The best strategy combines both fundamental and technical tests, for several reasons:

1. Both approaches offer something of value. It is not fair to assume that one approach is “correct” and the other is “wrong.” Both offer useful information that you need to make good decisions and to time your buy, hold or sell actions. It is impossible to ignore price trends, even if you are a dedicated fundamental “true believer.” And even the most focused technician understands that financial trends and reports ...