INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE)
Vol. 1 No. 5 (2024): INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE)

EFFECTIVENESS OF FUNDAMENTAL AND TECHNICAL ANALYSIS TECHNIQUES IN PREDICTING STOCK MOVEMENTS: A REVIEW OF THE LITERATURE AND ITS IMPLICATIONS

Hety Devita (Universitas Mulia Balikpapan)
Muhamad Eko Wahyu Umaryadi (Universitas Mulia Balikpapan)
Prawhida Surya Buana (Sekolah Tinggi Ilmu Ekonomi Madani Balikpapan)



Article Info

Publish Date
17 Feb 2026

Abstract

This study aims to review the effectiveness of fundamental and technical analysis techniques in predicting stock movements and their implications for investors. Fundamental analysis focuses on a company's financial condition, business performance, and macroeconomic factors to estimate the intrinsic value of a stock, while technical analysis uses historical price and trading volume data to identify market patterns and trends. A literature review shows that each method has advantages and limitations. Fundamental analysis is more suitable for long-term investments as it provides an in-depth view of a company's growth prospects, while technical analysis is more useful in short- and medium-term decision-making due to its ability to identify trading signals based on recent market behaviour. The conclusion of this study highlights that a combination of both techniques can support a more comprehensive and effective investment strategy, by optimising portfolio performance and minimising risk under various market conditions.

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Journal Info

Abbrev

IJEFE

Publisher

Subject

Economics, Econometrics & Finance

Description

INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE) is a scientific journal that publishes articles in the field of Business and finance that contain conceptual ideas in the fields of Economics, Accounting, Management, Business and finance. The scope is Human Resource Management, Marketing ...