I will pay for the following article Does the Efficient Market Theory Apply on the FOREX Market Fundamental Analysis vs. Technical Analysis. The work is to be 10 pages with three to five sources, with
I will pay for the following article Does the Efficient Market Theory Apply on the FOREX Market Fundamental Analysis vs. Technical Analysis. The work is to be 10 pages with three to five sources, with in-text citations and a reference page. Just to give you an insight into the battle between the fundamental and technical analysis. the technical analysis is based on the price movement of the stock whereas the fundamental analysis is done based on the study of financial statements and statements of cash flows and various other fundamental economic indicators.
Realistically speaking, the efficient market hypothesis is applicable to the foreign exchange market. The technical analysis is based on the price movement of the stock. Any company with a transparent history of the stock trade is a potential candidate for technical analysis. Consider two people who are studying a company. Both of them are looking to invest in the company (to buy its stocks). The person “A” who is a fundamental analyst will be looking at the product of the company, its finances, and management to evaluate its value. Based on these tools, he will see if the value of the current price of the stock is less than its intrinsic value. In that case, he will buy the stocks.
On the other hand, you have the person “B”, who is also studying the same company to invest in. This person is a technical analyst, he will not study the fundamentals of the company, i-e the financial statements, the statement of cash flows, and the income statement. He will simply look at the stock’s performance in history. He will try to squeeze out some patterns from the past performance of the stock. This study is usually done through reading the past charts of the stock’s performance, highlighting the ups and downs. If the trend is looking upwards, the person “B” will buy the stock. In both cases, both persons got to the same conclusion of buying the stock of the same company, but their methods were entirely different. The person “B” does not even have to visit the company to do the technical analysis.