Fundamental analysis (FA) is a key approach in trading that focuses on evaluating the intrinsic value of an asset by analyzing economic, financial, and qualitative factors. Unlike technical analysis, which relies on price charts and patterns, FA examines real-world data to determine whether an asset is overvalued or undervalued.
Key Components of Fundamental Analysis:
Macroeconomic Factors 
– Traders assess interest rates, inflation, GDP growth, and geopolitical events that influence market conditions.
Company Financials (For Stocks) 
– Earnings reports, revenue, profit margins, and balance sheets help determine a company’s financial health.
Industry & Market Trends 
– Understanding the broader industry outlook and competitive landscape helps in predicting long-term performance.
Tokenomics & Utility (For Crypto) 
– In crypto markets, factors like token supply, use case, team, and adoption levels are crucial for valuation.