Fundamental VS. Technical Analysis Part 1.

What does Technical Analysis people say about fundamental analysis?

*Source: Stockchart.com

Fundamental analysis can be valuable, but it should be approached with caution. If you are reading research written by a sell-side analyst, it is important to be familiar with the analyst behind the report. We all have personal biases, and every analyst has some sort of bias. There is nothing wrong with this, and the research can still be of great value. Learn what the ratings mean and the track record of an analyst before jumping off the deep end. Corporate statements and press releases offer good information, but they should be read with a healthy degree of skepticism to separate the facts from the spin. Press releases don't happen by accident; they are an important PR tool forcompanies. Investors should become skilled readers to weed out the important information and ignore the hype.

What does Fundamental Analysis people say about technical analysis?

Since no one picture can show the point, please visit below link for more information.
*Source Link: http://articles.mql4.com/489

It recurs to me the following ancient Chinese parable:

– Can one talk riddles to people? Baigun asked Confucius, but the latter said nothing.
– What will happen if a riddle will be like a stone thrown into a river? Baigun asked.
– There are very good divers in the Kingdom of Wu, they will fish it out, Confucius answered.
– And what happens if a riddle is like water poured into the water?
– They mixed water from rivers Tze and Shan. However, cook Yi Ya tasted it and distinguished which is which. 
– Do you mean that one should not talk riddles?
– Why not? However, does the speaker himself understand the meaning of words? Those who understand the meaning of words won't speak in words. Fisher's clothes gets wet, hunter's feet get tired, but not for pleasure. Since true words are without wording, a true act is inactivity. After all, everything the perfunctory persons are arguing about is so insignificant!

Having got no change out of the Master, Baigun died in the bath.

The market talks riddles with people. A chart is words, wet clothes, sore feet. We need to get to the bottom - how many quails did the hunter get down, how many fish did the fisher hook? The list of chartists "died in the bath" will probably be rather long.

Having found an object in the chart, an analyst hastens to exclaim: "The market turns its direction since I see the object in the chart!". However, one should act differently. Having observed something in the chart, one has to ask him or herself: "What process happening in the market caused appearance of this graphical object in the chart? Will this process result in a turn or just in some correction?"

Neglecting the essential contents of processes that take place in the market resulted in the worst mistakes in further development of technical analysis.

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Summarizing all above, I would like to note that technical analysis is now experiencing "teething troubles" marked by walking in heavy-going refinements of naive empiricism. Technical analysis has every chance to become a real science. However, this needs new developments, not only true realization of lacks and mistakes.

Unfortunately, most technical analysts ignore all this reasoning. They have shrunk into their little world. They just like to build charts, that's all. However, their final task is to predict the future. And this is the most difficult thing in the market. The future is not conserved as a zip file in the past. It always springs surprises on us.

This is the future that will show us whether technical analysis is able to overcome its own boundedness and start a new development cycle.