Key elements of technical analysis in finance

B

Technical analysts tend to believe that successful fundamental analysis is contingent on obtaining new information before others, and processing it quickly and correctly. But they feel that this is very difficult, and that fundamental analysis is held back by its heavy reliance on financial accounting statements. They believe that those statements do not contain a great deal of information useful to security analysts, that different accounting standards make comparisons difficult, and that many important psychological factors and other nonquantifiable variables (such as customer goodwill) do not appear in those statements.