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Why technical 'analysis' is garbage (explained by a quant developer)
Why Technical Analysis Is a Load of Garbage
Introduction
What's up guys, it's Coding Jesus, and in today’s video, I want to talk about why I know—not I think, not I believe—why I know that technical analysis is a load of garbage.
For those of you that are new to this channel, I am a high-frequency trading software engineer. I write algorithms to trade automatically—or algorithmically, rather—with the exchange. I also write trading applications to fill out traders, to submit custom strategies, to view their risk, to trade manually with the exchange, and that also involves creating charting software. So I am by no means new to charts.
What Is Technical Analysis?
Okay guys, what is technical analysis, if you can even call it a form of analysis? Why do people believe in it, and why is it totally garbage?
Technical analysis is a belief that future price movements can be predicted by current and previous price movements. Of course, the chartists will tell you that there's also a MACD, and volume, and other indicators—it’s not only price. But at the end of the day, guys, it comes to price.
