May 6, 2013
My goal here is not only to provide knowledge but also to dispel a myth, the myth that markets are predictive. They are not. They are probabilistic. My trading methodology revolves around defining and assessing those probabilities based on a stock’s past behavior and the distribution of that behavior.
On the one hand, quantitative analysis is defined as a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and trading volume. Technical analysis (TA), on the other hand, uses charts and other tools to identify patterns that can suggest future activity. A security’s intrinsic value is of no interest.
Read the rest over at Trading Markets.