You are viewing a single comment's thread from:RE: Technical Analysis is BullshitView the full contextView the direct parentrichq11 (75)in #trading • 8 years ago It doesn't mean a thing because it has all changed in the time since it was posted!
Not entirely, this analysis is very useful, it's just not that obvious for people who are not quants.
For example my analysis shows that the best model that fits this is a SARIMA(1,1,1), which then can be used for forecasting.
Sorry to offend...it was a joke!
It can also be used for risk analysis for longer term investors, where they can measure the volatility and the trend of the future volatility.
And many more practical use cases, it's just that they are not that obvious at first look. A lot of information can be revealed from past data.
I studied statistical analysis in college and was particularly impressed in homoskedasticity (probably spelled wrong, it's been 25 years)in social sciences.
@richq11 Definitely working with homoskedastic models is very easy, but unfortunately all financial markets are hetero.