There are two broader ways to understand the market properly. One is fundamental analysis and another is technical analysis. These are two totally different approaches, which often conflicts in the process of decision-makings.
Before we go in to depth, let us know what they exactly stands for.
 
Fundamental analysis studies the “inner description” of the security.  It includes the financial data which tries to emphasis upon SWOT viz the Strength, the Weakness, the Opportunity and finally, the possible Threats of the the security 

 While technical analysis, on the other hand, depends solely up on the price movements only. Technical analysis tries to find the “trend” which is derived from the “supply” and “demand “ imbalance in the market 

 If we go in a little depth, then we will see that the “crowd” of the market which participate in the market action, is driven by two emotions, one is ‘fear’ and another is ‘greed’

  These two emotions drive them to more irrational, rather than rational ways and while to predict on a single persons emotion is next to impossible but we can predict on the group behavior by analyzing the supply and demand or in other words, the fear and the greed factors associated with any security, because under a given situation, it can be seen in thorough psychological analysis, that a group of peoples reacts in the same way which they have reacted in many years ago. That is why history repeats itself in the market. 

 While the fundamental analysis tries to define the intrinsic value of a security and if the security is under valued then will give a buy call and if the security is over valued then it will give the sell call, the technical analysis, on the other hand, believes that all the information which can effect the security is already factored in the market price, and only the market price itself will command its future way, upward or downward