b (a). When to use different combinations  of analyses in Trading?

Analysis is crucial in stock trading because it helps traders make informed, reasonable, and data-driven decisions rather than relying on luck or assumptions.

We can use technical, fundamental or quantitative analysis independently. 

Most Long term Investors use fundamental analysis to find out multi baggers. Here the investor is not focusing on the price but considers its value. 

Long term or Medium term Traders use technical analysis to find out stocks at discounted price. He may wait to enter the stock till it touches the 50 / 200 EMA or to wait for a pull back.

Most Short term Traders use quantitative analysis to catch the momentum.

Right combinations of analysis:

1. Technical and Fundamental Analysis

This combination can be used when the market is Bullish or in Range. It can’t be used when the market is Bearish. This combination is suitable for long term, short term and intraday trading.

2. Technical and Quantitative Analysis

This is the best combination to be used when the market is Bullish. This analysis can be used for swing trade and intraday.

3. Technical, Fundamental and Quantitative Analysis

This combination will only work during the Bullish trend. But when the market is in Range there is a chance that it may work with few selected stocks which have more market presence. This trio will work efficiently for swing trades.

Right decision at the right time:

In order to decide which analysis to follow, you should identify your trading style. 

1. 1. If you are a person who has full confidence in finding valuable stock and is not worried about holding a particular amount of money in a demat account for a few years then go with fundamental analysis. He is the person who believes that the money will work for him through the selected company stock. He will decide to buy a stock even when the market is in a down trend because he is looking for value.

2. 2. Technical analysis will be the right decision if you believe in trends or patterns. The market or a particular stock will create some patterns now and then. You can utilize the opportunities by following breakouts created after the range. During pattern formation the market or the stock will be in range, when you will be benched and you have to wait for the right time and identify the breakout or the up trend.

For intraday this analysis can be applied on a stock either in uptrend or downtrend. By identifying the patterns we will be able to  trade with or without the support of indicators.

3. 3. If you are a momentum hunter then go for quantitative analysis. This can be applied only when the stock is in uptrend and can be used for short term trade or swing trade. 

For intraday this analysis can be applied on a stock either in uptrend or downtrend with the help of data and tools.

Every type of analysis has its own merits and importance in itself, but we use different combinations, according to our trading style, to get more conviction trades.

Note: Kindly note that scenario we have discussed here is applicable to stocks not on Futures or Options.