{"id":68145,"date":"2019-09-01T23:39:34","date_gmt":"2019-09-01T15:39:34","guid":{"rendered":"https:\/\/nomoneylah.com\/?p=68145"},"modified":"2022-05-02T13:25:49","modified_gmt":"2022-05-02T05:25:49","slug":"fundamental-vs-technical-analysis","status":"publish","type":"post","link":"https:\/\/nomoneylah.com\/2019\/09\/01\/fundamental-vs-technical-analysis\/","title":{"rendered":"Fundamental vs Technical Analysis (&#038; How To Use BOTH of Them to Invest)"},"content":{"rendered":"\r\n<h4 class=\"wp-block-heading\"><span class=\"font-762333\"><strong>Disclaimer: I do not claim to be an expert in any of the methodologies mentioned in this article. This article is just my general opinion on FA and TA, and should not be treated as Buy\/Sell call by any means. <\/strong><\/span><\/h4>\r\n\r\n\r\n<hr class=\"wp-block-separator is-style-dots\" \/>\r\n\r\n\r\n<p><span class=\"font-134980\">One of the most interesting discussion, when I get to meet <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/nomoneylah.com\/2019\/04\/10\/investment-mistakes\/\" target=\"_blank\" rel=\"noopener noreferrer\">stock investors<\/a><\/span>, is definitely one\u2019s application of Fundamental Analysis (FA) or Technical Analysis (TA) in <a href=\"https:\/\/nomoneylah.com\/2019\/01\/10\/5-differences-between-investing-trading-that-experts-may-not-tell-you\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"color: #0000ff;\">investing<\/span><\/a> \u2013 and which is better.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">While there is no right or wrong answer to this discussion <em>(of which, sometimes turn into a debate)<\/em>, I thought that maybe I can share my 2 cents on this matter in this article:<\/span><\/p>\r\n\r\n\r\n<hr class=\"wp-block-separator is-style-dots\" \/>\r\n\r\n\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662d779d2a8b1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662d779d2a8b1\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/nomoneylah.com\/2019\/09\/01\/fundamental-vs-technical-analysis\/#First_Thing_First_What_is_Fundamental_Analysis_FA_and_What_is_Technical_Analysis\" title=\"First Thing First: What is Fundamental Analysis (FA), and What is Technical Analysis?\">First Thing First: What is Fundamental Analysis (FA), and What is Technical Analysis?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/nomoneylah.com\/2019\/09\/01\/fundamental-vs-technical-analysis\/#So%E2%80%A6Which_Approach_is_Better\" title=\"So\u2026Which Approach is Better?\">So\u2026Which Approach is Better?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/nomoneylah.com\/2019\/09\/01\/fundamental-vs-technical-analysis\/#Why_Do_I_Use_Both_FA_and_TA_in_Making_My_Investing_Decision\" title=\"Why Do I Use Both FA and TA in Making My Investing Decision?\">Why Do I Use Both FA and TA in Making My Investing Decision?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/nomoneylah.com\/2019\/09\/01\/fundamental-vs-technical-analysis\/#Example\" title=\"Example\">Example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/nomoneylah.com\/2019\/09\/01\/fundamental-vs-technical-analysis\/#No_Money_Lahs_Verdict\" title=\"No Money Lah\u2019s Verdict\">No Money Lah\u2019s Verdict<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"First_Thing_First_What_is_Fundamental_Analysis_FA_and_What_is_Technical_Analysis\"><\/span><span class=\"font-762333\"><strong>First Thing First: What is Fundamental Analysis (FA), and What is Technical Analysis?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">FA and TA are essentially 2 different schools of thoughts when it comes to <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/nomoneylah.com\/2019\/01\/10\/5-differences-between-investing-trading-that-experts-may-not-tell-you\/\" target=\"_blank\" rel=\"noopener noreferrer\">investing<\/a><\/span>. Simply put, they are two different approaches towards achieving the same <a href=\"https:\/\/nomoneylah.com\/2019\/02\/10\/4-ultimate-financial-goals\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"color: #0000ff;\">financial goal<\/span><\/a> in investing \u2013 to profit from our investments.<\/span><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>\r\n<h4><span class=\"font-762333\">Fundamental Analysis (FA)<\/span><\/h4>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\"><strong>FA is an approach used by investors to identify the underlying intrinsic value<\/strong> <strong>(a.k.a. the real worth)<\/strong> of a company or <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/nomoneylah.com\/2019\/06\/30\/stock-trading-account\/\" target=\"_blank\" rel=\"noopener noreferrer\">stock<\/a><\/span> via studies on industry and company\u2019s data &amp; financial statements, economic cycle and seasonality and more.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">Ideally, investors that use FA aim to <strong>invest in a company while its shares are being sold at a price <em>lower<\/em> than its intrinsic value<\/strong>. As such, investors will then profit from the dividend returns <em>and<\/em> when the price of the shares increases down the line &#8211; a.k.a. Value Investing.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"1024\" height=\"766\" class=\"wp-image-68154\" src=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adults-analysis-banking-1451447-1024x766.jpg\" alt=\"\" srcset=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adults-analysis-banking-1451447-1024x766.jpg 1024w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adults-analysis-banking-1451447-300x224.jpg 300w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adults-analysis-banking-1451447-768x575.jpg 768w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adults-analysis-banking-1451447.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\r\n<figcaption>Fundamental Analysis (FA) &#8211; the use of economic and financial data to study a company inside out.<\/figcaption>\r\n<\/figure>\r\n\r\n\r\n\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>\r\n<h4><span class=\"font-762333\">Technical Analysis (TA)<\/span><\/h4>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">TA, on the other hand, is another approach towards <a title=\"\" class=\"aalmanual\" href=\"https:\/\/nomoneylah.com\/2019\/01\/10\/5-differences-between-investing-trading-that-experts-may-not-tell-you\/\">investing<\/a> via the<strong> analysis of price charts<\/strong>. Through price charts, investors are able to identify important details such as the price trend and the momentum of a company&#8217;s price.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">From that, investors will be able to <strong>gauge their ideal <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/nomoneylah.com\/2019\/04\/10\/investment-mistakes\/\" target=\"_blank\" rel=\"noopener noreferrer\">entry and exit price<\/a><\/span><\/strong>.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"1024\" height=\"683\" class=\"wp-image-68155\" src=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/analytics-chart-data-186461-1024x683.jpg\" alt=\"\" srcset=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/analytics-chart-data-186461-1024x683.jpg 1024w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/analytics-chart-data-186461-300x200.jpg 300w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/analytics-chart-data-186461-768x512.jpg 768w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/analytics-chart-data-186461.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\r\n<figcaption>Technical Analysis (TA) &#8211; the use of price charts to study trends and momentum.<\/figcaption>\r\n<\/figure>\r\n\r\n\r\n<hr class=\"wp-block-separator is-style-dots\" \/>\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"So%E2%80%A6Which_Approach_is_Better\"><\/span><span class=\"font-762333\"><strong>So\u2026Which Approach is Better?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">Simply google for this topic and you will get a lot of heated debate between pure FA and TA investors criticizing the approach by the other party \u2013 and for good reasons.<\/span><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>\r\n<h4><span class=\"font-762333\">The Problem with FA<\/span><\/h4>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">For one, while FA takes into account of various data from financial statements, economic outlook and cycles and, heck, even project future growth with projection models, <strong>it CANNOT run away from making underlying assumptions<\/strong> (eg. Assuming X% growth annually, Assuming company X gets this government contract\u2026).<\/span><\/p>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">Meaning, assumptions made <em>MAY<\/em> or <em>MAY NOT<\/em> come true \u2013 hence affecting the outcome of a particular investment decision.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">In addition, <strong>buying into undervalued stocks with high intrinsic value <em>DO NOT<\/em> mean that your investment will increase in value the next day<\/strong> <em>(psst..it may take years)<\/em>.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">Reason being, the market (reaction between buyers &amp; sellers) is not rational, and may not reflect the underlying intrinsic value of a stock\u2019s price. <strong>As such, for certain investing decisions made purely on FA, it will take a lot of patience for things to work out in one\u2019s favor.<\/strong><\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"1024\" height=\"683\" class=\"wp-image-68156\" src=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adolescent-beautiful-beauty-2118058-1024x683.jpg\" alt=\"\" srcset=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adolescent-beautiful-beauty-2118058-1024x683.jpg 1024w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adolescent-beautiful-beauty-2118058-300x200.jpg 300w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adolescent-beautiful-beauty-2118058-768x512.jpg 768w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/adolescent-beautiful-beauty-2118058.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\r\n<figcaption>Do you have the patience to wait for your investment decision to reach its potential?<br \/><span style=\"color: #ffffff;\">p<\/span><\/figcaption>\r\n<\/figure>\r\n\r\n\r\n\r\n<ul>\r\n<li>\r\n<h4><span class=\"font-762333\">The Problem with TA<\/span><\/h4>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">On the other hand, the use of TA is widely subjective on 2 underlying elements: <strong>time horizon <em>and<\/em> techniques<\/strong>. Let me explain:<\/span><\/p>\r\n\r\n\r\n\r\n<p><span class=\"font-134980\">The <strong>time horizon of an investor when it comes to TA can affect one\u2019s view on the market for a various degree<\/strong>. As an example, a long-term investor (5 \u2013 10 years) may look into the below chart and have a bullish (a.k.a. positive) view on a particular stock, yet a shorter-term investor may have a bearish (a.k.a. negative) view on the stock.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image\"><a href=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-1.jpg\"><img decoding=\"async\" width=\"998\" height=\"680\" class=\"wp-image-68148\" src=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-1.jpg\" alt=\"\" srcset=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-1.jpg 998w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-1-300x204.jpg 300w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-1-768x523.jpg 768w\" sizes=\"(max-width: 998px) 100vw, 998px\" \/><\/a><\/figure>\r\n\r\n\r\n\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n<p><span class=\"font-134980\">Another thing when it comes to TA is that there are so many different methodologies (Price Action, Turtle, Ichimoku, Elliot Wave, etc.) and indicators (MACD, RSI, Bollinger Band, etc.) out there, it is <strong>almost impossible for all TA investors to come into agreement<\/strong> for one particular set of price chart.<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<hr class=\"wp-block-separator is-style-dots\" \/>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Do_I_Use_Both_FA_and_TA_in_Making_My_Investing_Decision\"><\/span><span class=\"font-762333\"><strong>Why Do I Use Both FA and TA in Making My Investing Decision?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">So far, it is not hard to see both the strengths and weaknesses of each approach when it comes to investing:<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\"><strong>FA enables us to study a company inside out<\/strong> via financial data and economic\/industry outlook, <strong><em>yet<\/em> lack the precision<\/strong> needed for investors to enter the market.<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">On the flip side, <strong>TA allows us to look into price charts and time our entry<\/strong> into the market with the help of price action and indicators. However, TA methodologies could be different depending on who\u2019s using them, hence making it <strong>very subjective<\/strong>.<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">But hey, <strong>WHY NOT leverage on the strength of both FA and TA<\/strong> to improve our overall investment decision?<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">As in, WHY NOT leverage on FA to help analyze a stock inside out and obtain its underlying intrinsic value (which TA lacks), and apply TA to assist us in our entry into the market (of which FA is weak in)?<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">Make <em>(a lot of)<\/em> sense?<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<hr class=\"wp-block-separator is-style-dots\" \/>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example\"><\/span><span class=\"font-762333\"><strong>Example<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">A very common way of identifying if a <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/nomoneylah.com\/2019\/08\/06\/introduction-reits\/\" target=\"_blank\" rel=\"noopener noreferrer\"><abbr class='c2c-text-hover' title='Fund that manages a portfolio of commercial and\/or private properties.'>REIT<\/abbr><\/a><\/span>\u2019s intrinsic value is through comparing a REIT\u2019s market place against its <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/nomoneylah.com\/2019\/08\/18\/reit-terms\/\" target=\"_blank\" rel=\"noopener noreferrer\">Net Asset Value Per Unit (NAVPU)<\/a><\/span>. <strong>Generally, a REIT that is sold at a market price less than the NAVPU is considered undervalued.<\/strong><\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<figure class=\"wp-block-image\"><a href=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-2.jpg\"><img decoding=\"async\" width=\"1009\" height=\"471\" class=\"wp-image-68149\" src=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-2.jpg\" alt=\"\" srcset=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-2.jpg 1009w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-2-300x140.jpg 300w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-2-768x359.jpg 768w\" sizes=\"(max-width: 1009px) 100vw, 1009px\" \/><\/a>\r\n<figcaption>Note: Market price is RM1.38 as of the time of writing. (Source: i3investor)<\/figcaption>\r\n<\/figure>\r\n<p>\r\n\r\n<\/p>\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">Now, <strong>considering that due-diligence has been done<\/strong> and given that YTL REIT has a <strong>NAVPU of RM1.606 \u2013 meaning, rationally, this is where the market should price YTL REIT in an ideal scenario.<\/strong> Yet, on the price chart below, even at an obvious upward trend, market is still pricing YTL REIT (RM1.38) way below its NAVPU of RM1.606.<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<figure class=\"wp-block-image\"><a href=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-3.jpg\"><img decoding=\"async\" width=\"775\" height=\"528\" class=\"wp-image-68150\" src=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-3.jpg\" alt=\"\" srcset=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-3.jpg 775w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-3-300x204.jpg 300w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-3-768x523.jpg 768w\" sizes=\"(max-width: 775px) 100vw, 775px\" \/><\/a>\r\n<figcaption>NAVPU (RM1.606) &gt; Market Price (RM1.38) &#8211; Undervalued.<\/figcaption>\r\n<\/figure>\r\n<p>\r\n\r\n<\/p>\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n<p><span class=\"font-134980\">In <em>general<\/em>, as an investor that purely use FA in his\/her investing decision, any price below intrinsic value would be a decent buy. <strong>However, one may find it challenging to identify a relatively better entry without the use of TA.<\/strong> (eg. While buying at an all-time high of RM1.38 is still a fundamentally lower price, <em>yet<\/em> wouldn\u2019t it be better if you are able to enter at, say, RM1.20?)<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">Now, after using FA to identify undervalued stocks, I\u2019ll normally apply one simple TA method call <strong>Moving Averages (MA) cross<\/strong> (refer to picture below). This method would help me identify trend changes on price charts:<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\"><strong>Simply put, when the 50-Days MA (<span style=\"color: #339966;\">Green<\/span> line) crosses above 150-Days MA (<span style=\"color: #ffcc00;\">Yellow<\/span> line) and both MAs are sloping upward, it would signify an uptrend movement and would be an ideal entry point for me.<\/strong><\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">Therefore, even when YTL REIT is valued below its intrinsic value (RM1.606), with a simple TA method, I can identify a relatively better entry. This is a better gauge for entry for sure, if you were to ask me.<\/span><\/p>\r\n<p><span style=\"color: #ffffff;\">p<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"907\" height=\"620\" class=\"wp-image-68151\" src=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-4.jpg\" alt=\"\" srcset=\"https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-4.jpg 907w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-4-300x205.jpg 300w, https:\/\/nomoneylah.com\/wp-content\/uploads\/2019\/09\/pic-4-768x525.jpg 768w\" sizes=\"(max-width: 907px) 100vw, 907px\" \/>\r\n<figcaption>The use of Technical Analysis (TA) provide investors guidance on a relatively better entry and exit.<\/figcaption>\r\n<\/figure>\r\n<p>\r\n\r\n<\/p>\r\n<hr class=\"wp-block-separator is-style-dots\" \/>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_Money_Lahs_Verdict\"><\/span><span class=\"font-762333\"><strong>No Money Lah\u2019s Verdict<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">So here you go! This week\u2019s article goes a little more in-depth about investing methodologies and approaches, and I genuinely hope that you learn or gain something out of this!<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p><span class=\"font-134980\">With that in mind, if you find this article useful, do consider <strong>SHARING<\/strong> this article out, and be sure to <strong>subscribe<\/strong> for more value-adding content from No Money Lah!<\/span><\/p>\r\n<p>\r\n\r\n<\/p>\r\n<hr class=\"wp-block-separator\" \/>\r\n<p>\r\n\r\n<\/p>\r\n<p><\/p>\r\n<p>&nbsp;<\/p>\r\n<p><\/p>\r\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-luminous-vivid-orange-background-color\" href=\"https:\/\/nomoneylah.com\/workshop\/\"> Learn HOW TO BUILD A RELIABLE PASSIVE INCOME STREAM VIA REITs HERE! <\/a><\/div>\r\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>FA and TA are essentially 2 different schools of thoughts when it comes to investing. Simply put, they are two different approaches towards achieving the same financial goal in investing \u2013 to profit from our investments.<\/p>\n","protected":false},"author":1,"featured_media":68163,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[17,18,333],"tags":[262,275,300,349,367,371],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v22.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fundamental vs Technical Analysis (&amp; How To Use BOTH of Them to Invest) - No Money Lah<\/title>\n<meta name=\"description\" content=\"Now, after using Fundamental Analysis to identify undervalued stocks, I\u2019ll normally apply one simple Technical Analysis method call Moving Averages (MA) cross that would help me identify trend changes on price charts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nomoneylah.com\/2019\/09\/01\/fundamental-vs-technical-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fundamental vs Technical Analysis (&amp; 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