Technical Analysis and Its Implementation in Python
In the previous chapter, we considered fundamental factors and saw how they may impact market prices. We noted that, although such an impact may be significant and potentially quite lucrative for trading, most of the time, it’s difficult to suggest a quantitative model that could generate unambiguous trading rules (when to enter the market, to which direction, and when to exit it) that wouldn’t require human discretion. For clarity’s sake, let’s note that there exist various fully quantitative approaches to evaluating fundamental factors, even political ones, but they are based on complex cross-discipline subjects, such as semantic analysis, and thus require solid knowledge of respective sciences. Is it possible to avoid this complexity and find a method to analyze market behavior using only price data? Or, maybe, some additional data, but only in numeric form?
The answer is yes, and this kind of market...
