29. December 2016

Combinatory Analysis
Merging TA with FA on the stock of Apple Inc.   

I want to introduce a new tool for you here. I will apply technical analysis (TA) on fundamental data (FA) to give a unique perspective.

Think of technical analysis as a swiss army knife that can be used for multiple things. TA can even be used on fundamental data instead of just "price". In fact, technical analysis can be used on good fundamental data (supply, demand, profits etc.) and extract extra information that is not obtained by fundamental analysis itself.

I have taken a random stock, which turned out to be Apple. From this I have chosen the profit rate as one random set of fundamental data. I then use technical analysis on the profit rate to see what the technical view on this fundamental can offer me - and if I can learn something "extra" than what the fundamental guys can get.

Oh, by the way, don't buy or sell Apple based on this analysis. I only show one single fundamental and that is of course not enough. You have to make a full analysis. This example just gives you a good idea of how to enhance your own work.

I did my Master thesis on how TA can be applied to FA data, so it's fun for me to show a concrete example. I call this "Combinatory Analysis" and I think this is capable of bringing analysis a step (big or small, that is up to you to assess) forward.

See the video and try the method for yourself in a stock that you follow.