1. Technical Indicators

   1. Technical indicators are mathematical calculations based on a stock's price, volume, or open interest. They help traders identify trends, momentum, volatility, and potential reversals in stock price movements. These indicators are primarily used for short-term trading and rely on historical price action rather than company fundamentals.

   2. Examples of Technical Indicators:

      1. Moving Averages (MA) – Smooths price data to identify trends (e.g., Simple Moving Average (SMA), Exponential Moving Average (EMA)).

      2. Relative Strength Index (RSI) – Measures momentum and identifies overbought/oversold conditions.

      3. Bollinger Bands – Indicates volatility and potential breakout points.

      4. Moving Average Convergence Divergence (MACD) – Helps identify trend direction and strength.

      5. Fibonacci Retracement – Used to identify potential support and resistance levels.

   3. Key Feature: Technical indicators focus on price action and patterns rather than company fundamentals.

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1. Fundamental Indicators

   1. Fundamental indicators, often referred to as fundamental indicators, assess a company's financial health, industry trends, and macroeconomic factors. These indicators are used for long-term investment decisions rather than short-term trading.

   2. Examples of Fundamental Indicators:

      1. Earnings Per Share (EPS) – Measures a company’s profitability.

      2. Price-to-Earnings Ratio (P/E Ratio) – Evaluates a stock’s valuation relative to earnings.

      3. Debt-to-Equity Ratio (D/E Ratio) – Assesses a company’s financial leverage.

      4. Return on Equity (ROE) – Measures how efficiently a company generates profit.

      5. Revenue Growth – Tracks a company's ability to increase sales over time.

   3. Key Feature: Fundamental indicators focus on a company’s fundamentals and financial performance rather than stock price movements.

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1. Key Differences