Technical analysis is a type of analysis derived purely from charts and the price movement of the security. The basis of technical analysis is that past price movement is a good indicator for future price movement. Technical analysis uses statistical trends such as trading volume and historical support / resistance levels to gauge the movement of the price in the future. This in contrast to fundamental analysis, which involves looking at a security from a financial and economic point of view.
Fundamental analysis involves looking at the security from a financial and economic point of view. Typically, Fundamental Analysis is a method of determining a security or products real market value. Usually, traders and investors tend to look at the longer-term view of the market, looking at financial statements and economic data such as market share, industry growth, competition, business cycles and regulation. Therefore, this type of analysis is probably not suitable for shorter timeframes.