Most traders and investors use both in a combination. First, we need to understand the underlying assumptions. Fundamental Analysis is based on the assumptions that stock prices will eventually converge towards value. Therefore there is merit in studying the fundamental aspects of a stock. They believe that there is big money to be made if such value can be deciphered in advance of the market. Technical analysis works on the basis the core assumption that it is impossible to identify multi-baggers since markets are smart and reflect everything. Hence the best one can do in this kind of a random market is to identify trends and play them. Trends repeat because the humans who trade the market are still the same and are driven by the same set of emotions.

Remember, fundamental analysis can be a fairly laborious job. It entails the careful study of financial statements, demand forecasts, quality of management, earnings and growth. Finally, the intrinsic value of the company is estimated by a mix of quantitative, qualitative and competitive factors. Technical Analysis purely believes that decisions are taken by listening to what the market has to say. Of course technical analysis uses plethora of long standing theories like supports, resistances, oscillators, overbought/oversold zones, stochastic, break outs, Elliot Wave etc.

In a nutshell, fundamental analysis helps you to identify undervalued or overvalued shares. The gap is called the margin of safety. Based on this gap, you can take a decision to buy or sell the stock. Even the best of fundamental investors do use technical analysis for timing their entry and exit into stocks.