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Hello everyone,Simple question:Is technical analysis a form of quantitative finance?Why?

"Is technical analysis a form of quantitative finance?"Umm...Nope.

QuoteOriginally posted by: rolandograndiHello everyone,Simple question:Is technical analysis a form of quantitative finance?Why?people might have different definitions of quant finance. My definition is something like: 'quantitative finance is the application of scientific and engineering techniques from mathematics, computer science, and the physical sciences to problems in finance'.In this case technical analysis is to to quant finance what alchemy is chemistry: Prototypical, but very wrong.

One is astrology the other one is astronomy. I don't think technical analysis is a part of quantitative finance however there are some simple math involved (Bollinger bands etc)

QuoteOriginally posted by: BankingAnalystOne is astrology the other one is astronomy. I don't think technical analysis is a part of quantitative finance however there are some simple math involved (Bollinger bands etc)I would make a distinction between 'technicals' (eg. Boli bands) and technical anaylsis. Technicals, when propely used and understood, are a component of quantitative finance since they (and related ideas) are used within quantitiative trading etc... i.e. 'technicals' are estimators, admiting varying degrees of pathology, but estimators none the less.Technical analysis (which may also use 'tehnicals') on the other hand is about trying to spot 'patterns' in the market in a completey and utterly statistically naive fashion. You are right that it is a bit like astroloy in that it is a form of mysticism: You can recognise this because mystics are incapable of ever admiting that their method is wrong... i.e. it lacks any internal self-correcting mechanism.

Thanks everyone for your replies! One question, maybe broadening the subject: -What are the main applications of quantitative finance?

QuoteWhat are the main applications of quantitative finance? 1- the pricing and hedging of derivative securities (75%)2- the construction of portfolios having desired risk and return characteristics (25%)... go and study