Technical vs Fundamental Analysis

Investors broadly fall into two camps: fundamental analysts who study balance sheets, and technical analysts who study price charts. Both have merits, and many successful investors use elements of each.

Fundamental Analysis

Focuses on what a company is worth. Examines revenue, earnings, debt, competitive advantages, management quality, and industry trends. Benjamin Graham and Warren Buffett are the most famous practitioners. Best for: long-term investing, identifying undervalued companies.

Technical Analysis

Focuses on what the market is doing. Studies price patterns, volume, moving averages, support/resistance levels, and momentum indicators. Best for: timing entries and exits, short to medium-term trading.

The DipBuster Approach

DipBuster primarily uses fundamental analysis (Graham NCAV, earnings quality, balance sheet metrics) but incorporates technical elements through the Price Momentum component of the DipBuster Score. We believe fundamentals tell you what to buy, and momentum can help with when to buy it.