Fundamental and technical analysis WSE-EK-AFiT
The course "Fundamental and Technical Analysis" aims to provide students with a comprehensive understanding of two key methods used to analyze financial markets and securities—fundamental analysis and technical analysis—employed to assess the profitability of investments, particularly in stocks, bonds, and other financial instruments. Throughout the course, students will explore the theoretical foundations, assumptions, objectives, tools, and limitations of both approaches.
In the section devoted to fundamental analysis, students will learn how to assess the financial condition of companies and entire economic sectors based on macroeconomic and microeconomic data, financial statements, financial ratios, as well as market and non-market factors. Emphasis will be placed on evaluating the intrinsic value of financial instruments, valuation methods, financial reporting analysis, and forecasting trends in the economy and markets.
In contrast, technical analysis will be presented as a method of evaluating price movements of financial instruments through charts, price patterns, technical indicators, and trend theories. Students will learn how to identify buy and sell signals, apply chart-based investment strategies, and recognize key support and resistance levels.
Classes will be conducted in the form of a seminar. Students will analyze real market data, interpret charts, prepare analytical reports, and simulate investment decision-making based on the acquired knowledge.
Course Objectives:
• To introduce students to the core principles and significance of fundamental and technical analysis in the investment decision-making process.
• To develop skills in interpreting financial and economic data for the purpose of assessing the value of securities.
• To enhance the ability to use analytical tools to identify investment signals and market trends.
• To cultivate decision-making competencies based on the analysis of historical and current data.
• To prepare students for independent and responsible analytical work in the fields of finance, investment advisory, and portfolio management.
Key Topics:
I. Introduction to Financial Market Analysis
• Characteristics of financial markets and investment instruments
• The role of information and investor expectations
• Market efficiency and its implications for analysis
II. Fundamental Analysis
• The essence and objectives of fundamental analysis
• Macroeconomic environment analysis (GDP, inflation, interest rates, unemployment)
• Sector and industry analysis (industry life cycle, competition, entry barriers)
• Financial statement analysis:
o analysis of the balance sheet, income statement, and cash flow statement
o financial ratios: profitability, liquidity, debt, and activity indicators
• Company valuation:
o discounted cash flow method (DCF)
o market multiples (e.g., P/E, P/BV)
• Formulating investment recommendations based on fundamental analysis
III. Technical Analysis
• Assumptions and philosophy of technical analysis
• Types of charts (line, bar, candlestick) and their interpretation
• Price patterns (reversal and continuation formations)
• Dow Theory and Elliott Wave Theory
• Market trends: identification, trend lines, price channels
• Support and resistance levels, price gaps
• Technical indicators and oscillators (RSI, MACD, moving averages, Bollinger Bands)
• Investment strategies based on technical analysis
• Volume analysis and its role in confirming signals
IV. Integrated Approach to Market Analysis
• Comparison and complementarity of fundamental and technical analysis
• Market situation analysis using both approaches
• Building investment strategies based on integrated analysis
V. Practical Applications and Simulations
• Working with real market data (e.g., from financial platforms and databases)
• Practical exercises using analytical tools and software (e.g., Excel, trading platforms)
• Simulation of investment decisions and portfolio building
• Evaluating the effectiveness of applied strategies
(in Polish) Dyscyplina naukowa, do której odnoszą się efekty uczenia się
(in Polish) E-Learning
(in Polish) Grupa przedmiotów ogólnouczenianych
Subject level
Learning outcome code/codes
Type of subject
Preliminary Requirements
Course coordinators
Learning outcomes
Learning Outcomes
Knowledge (K):
• K1. The student knows and understands the fundamental concepts, principles, and methods of fundamental and technical analysis used in the evaluation of financial instruments.
• K2. The student has knowledge of financial data sources, the structure of financial statements, and economic indicators essential for conducting fundamental analysis.
• K3. The student is familiar with chart analysis techniques, price formations, trends, and technical indicators and understands their role in predicting market behavior.
Skills (S):
• S1. The student is able to conduct a fundamental analysis of a company based on financial data, estimate the intrinsic value of stocks, and formulate investment recommendations.
• S2. The student is capable of applying technical analysis tools to identify buy and sell signals and evaluate market trends.
• S3. The student can independently collect market and financial data from various sources, interpret them, and use them in the investment decision-making process.
Social Competences (SC):
• SC1. The student is prepared to critically assess the effectiveness and limitations of analytical methods in different economic conditions.
• SC2. The student understands the importance of responsibility in investment decision-making and the necessity of ethical behavior in analytical activities.
• SC3. The student is able to collaborate effectively in a team, share knowledge, and contribute to the development of joint analytical projects.
Assessment criteria
Assessment Criteria for the Course "Fundamental and Technical Analysis"
Grade 2 (Fail) – The student has not become familiar with the course content, shows no understanding of basic concepts related to the subject of "Fundamental and Technical Analysis," and has not participated in classes or related activities.
Grade 3 (Satisfactory) – The student has become familiar with the course content at a basic level, completed only the minimum required tasks to understand the fundamentals of the subject, and participated in classes without showing additional engagement.
Grade 4 (Good) – The student has a solid understanding of the course content, is able to independently seek out information needed to solve tasks, understands basic concepts related to the course and can find additional information beyond the basics. The student actively participated in classes and demonstrated additional involvement.
Grade 5 (Very Good) – The student has an in-depth understanding of the course content, including seeking out supplementary information beyond the curriculum. The student has mastered both basic and advanced concepts of the subject, is capable of solving complex problems related to "Fundamental and Technical Analysis," and actively participated in classes as an engaged listener and speaker, completing additional tasks.
Final Grade Criteria:
The final grade is based on a test and the student's activity and work, including solving case studies, preparing individual papers (presentations), and completing both mandatory and optional assignments.
• 70% – Final paper (test or written assignment)
• 20% – Student work (project/presentation/case study)
• 10% – Participation and activity in class
TEACHING METHODS:
Case studies, discussion, presentation
Methods of Learning Outcome Verification:
Final paper, presentation, project
MODE OF DELIVERY:
On-site (in-person) learning
Bibliography
K. Borowski, Analiza fundamentalna. Metody wyceny przedsiębiorstwa, Wydawnictwo Difin, Warszawa 2014.
K. Borowski, Analiza techniczna. Średnie ruchome, wskaźniki i oscylatory, Wydawnictwo Difin, Warszawa 2017.
M. Krantz, Analiza fundamentalna dla bystrzaków. Jak minimalizować ryzyko i chronić swoje inwestycje, Wydawnictwo Septem, Warszawa 2022.
A. Zaremba, Giełda. Podstawy inwestowania, Wydawnictwo Onepress, 2014.
K. Kowalke, Analiza fundamentalna. Wykorzystanie na rynku akcji w Polsce, Wydawnictwo CeDeWu, Warszawa 2023
K. Jajuga, T. Jajuga, Inwestycje, Wydawnictwo Naukowe PWN, Warszawa 2007.
J. C. Ritche (red.), Analiza fundamentalna, Wydawnictwo WIGG-Press, 1997.
A. Pieloch-Babiarz, A. Sajnóg, Podstawy analizy fundamentalnej. Podejście strategiczne, Wydawnictwo Uniwersytetu Łódzkieg, Łódź 2016.
A. Pieloch-Babiarz, A. Sajnóg, Analiza fundamentalna. Standing finansowy i wycena przedsiębiorstwa, Wydawnictwo Uniwersytetu Łódzkieg, Łódź 2016.
J. Murphy, Analiza techniczna rynków finansowych, Wydawnictwo Maklerska, 2017.
H. Gurgul, Analiza zdarzeń na rynkach akcji. Wpływ informacji na ceny papierów wartościowych, Wydawnictwo Nieoczywiste, 2019.
B. Graham, Inteligentny inwestor. Najlepsza książka o inwestowaniu wartościowym, Wydawnictwo Studio EMKA, 2006.
D. Prokopowicz, M. Sieniawska, Analiza predykcji bankructwa spółek kapitałowych z branży budowlanej za pomocą wybranych modeli analizy dyskryminacyjnej (w:) "Zeszyty Naukowe Uniwersytetu Kardynała Stefana Wyszyńskiego. Ekonomia i Zarządzanie", Wydział Nauk Historycznych i Społecznych, Uniwersytet Kardynała Stefana Wyszyńskiego w Warszawie, nr 1(3) 2018, s. 89-123, ISSN 2544-1329.
D. Prokopowicz, Wpływ globalnego kryzysu rynków finansowych na rozwój rynku funduszy inwestycyjnych w Polsce (w:) Zeszyty Naukowe Wyższa Szkoła Zarządzania i Prawa im. Heleny Chodkowskiej w Warszawie. Rok XIV. Nr 3 (32)/2009 , s. 72 – 105. ISSN 1734-2198.
D. Prokopowicz, A. Dmowski, Rynki finansowe, Wydawnictwo Centrum Doradztwa i Informacji Difin sp. z o.o., Warszawa 2010. ISBN 978-83-7641-330-3. (Podręcznik akademicki).
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: