Has AI + Advanced Statistics Made Traditional Technical Analysis (TA) Obsolete?
Thanks to EODHD.com for the price data that make my posts possible. When you need high quality financial markets data, you can rely on EODHD.com-they are the best. EODHD clients who are financial modeling enthusiasts or funds are welcome to contact me for writing or analysis tasks: tiankhean@gmail.com . I live in Singapore so there may be time zone differences to take into consideration Introduction When we are not using fundamental data for investment analysis, we use price and volume data (Open, High, Low, Close, Volume). RSI, MACD, Moving Averages, Stochastics and all those TA tools. They may be useful for visualization of momentum, trading range, volatility, reversion to the mean and so on. But when it comes to probabilistic predictions, clustering and classification for arbitrage, portfolio optimization or complex pattern recognition, advanced statistical techniques have a clear edge. Many of these techniques have always been there, but th...