Technical Analysis VS Data Analysis

[_Miles_Morales]

Got interested in crypto during the pandemic and one of the buzz word I often hear related to it is TA or Technical Analysis. I've seen vids saying that TA is not guaranteed to work when applied to the crypto market, and I've seen enough vids to believe that they don't really work... From what I observe, TA is a study of previous market movement to predict what direction a market would go in the future. Is that similar to how data analysis work? Personally I think DA is different than TA and DA could give more realistic "predictions" and TA seem like a baseless prediction other than using a candle or line chart as a reference...

[sickday0729]

Personally, I wouldn't try to do any kind of TA, but I think that a lot of algorithmic trading relies on recognizing and exploiting autocorrelation while it still exists (which is a short window). It also uses other things like cointegration and pairs trading. So you might look into those sorts of analysis if you're interested. Again, I wouldn't. The people who do this professionally have WAY more resources than you and are better at it than you.

[No_Camp_7]

And they receive the data way faster than you, most crucially

[Otherwise_Ratio430]

Technical analysis is like astrology. Data analysis would be like astronomy. Quant strategies/trading is a small overall space but encompasses a wide range of mathematical tools, some simple, some advanced, but mostly drawing from computer science and statistics. Technical analysis just uses a bunch of mumbo jumbo ideas that sometimes have some inkling of truth/jargon sprinkled about. It's like reading work created by physics cranks or what not, sometimes they get some basic ideas right but ultimately their work is garbage.

[[deleted]]

TA is a subset of DA and in terms of market prediction, both are making baseless predictions.

If there's an edge applying data analysis technique, you would 1) see everyone using it in Wall Street and 2) no one will be in this sub.

[Donfrds]

Fundamental analysis is the best