Combining fundamentals with technical and sentiment evidence

Valuation, timing, and risk control are separate decisions.

Combining fundamentals with technical and sentiment evidence

| Concept | Explanation | |---|---| | Fundamentals | What the asset may be worth and why. | | Technical signals | How price, volume, momentum, and volatility are behaving. | | Sentiment | How investors and traders are positioned or feeling. | | Market context | Rates, liquidity, regulation, and economic regime. | | Strategy & risk | Position size, horizon, invalidation, diversification, and review process. |

Key idea: A fundamentally attractive asset can continue falling, and a weak asset can continue rising. Valuation, timing, and risk control are separate decisions.

Module knowledge check

  1. What makes a comparable asset credible?
  2. Why must EV-based numerators use enterprise-value denominators?
  3. How does sensitivity analysis improve honesty?
  4. Why should fundamentals not be used as a timing indicator?

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