statistical models outperform subjective forecast

jjk2 · #1 (**permalink**) 11-11-2007, 02:43 AM

this is from a book called evidence based technical analysis...

is it really true that statistical models applied to financial market is far more accurate than charting ?

zupcon · #2 (**permalink**) 11-11-2007, 11:42 AM

Quote:

Originally Posted by jjk2

this is from a book called evidence based technical analysis...

is it really true that statistical models applied to financial market is far more accurate than charting ?

Is that book by David Aronson ?, if so its a great into to basic statistics.

Charts are not the market, they're just an abstract view of the market, and as such they introduce a bias into the way you perceive reality. Statistics just give a different view of the the same information, or in some cases a more detailed view of information that's not immediately apparent.

In what way isn't a chart accurate ? it only shows 4 prices occurring over some arbitrary time period

drgoodvibe · #3 (**permalink**) 11-11-2007, 01:51 PM

Sociologists happen to use statistics to measure people's wants and needs and thinking all the time. Using statistics in trading is just a tool to measure trader/investor psychology.