Why technical 'analysis' is garbage (explained by a quant developer)

Do you guys practice Stock Astrology? If so, let me know why down below!

Then what stratergy quant trader use ?

I can't disagree more. Yes, certain patterns in TA will not always play out, but it's all about probabilities and assessing possible scenarios. To say that TA is total garbage is untrue. The bigger institutions/smart money automate most trading via key levels (support, resistance, etc.). Ofcourse trading is random and price moves stochastically, but there are thousands of billion dollar hedge funds that literally employ STEM PHDs to find random ass patterns only to get beat by the index. The retail trader isn't as sophisticated obviously, but with small position sizing and some knowledge of key levels, you 100% can make money in markets. Consistency comes from position sizing, patience, and reacting to price action. You're wasting your time as a quant developer if you want to be a buy and hold investor.

NOTHING is random. Price, as with everything, is infinitely complex. It is a function of the collective, emotional decisions of all participants in a given instrument. Their aggregate decision is reflected in the chart. This is a natural phenomenon - governed by fluid dynamics. Every move in price is a sine wave constructed of three distinct components. Each sine wave attempts to become a straight line, but fails - resulting in a channel, which appears as a straight line on higher timeframes. Momentum is THE critical factor in determining how price behaves.
I agree that classical TA is trash. However, it's sometimes close enough to instill false confidence. Again, it's fluid dynamics. Every tiny wave of a tsunami that reaches shore is connected in energy and movement with the epicenter of the quake. This is how price, and EVERYTHING works.

All I see is a head and shoulders in this video. And this guy is telling us that technical analysis is illegit??

Investing in the market earlier this year regardless of the crypto market conditions has saved my life. I made over 70k USD with a start of 5k in the last 7 months. I know it's nothing compared to what others make but I'm glad I'm changing my finances with Gustavo Hillard.

you started the video with a fallacy. We should believe you because you are "quant developer" ? LOL!
and where is the data that supports your point of view ? My god... talking about Head and shoulders....what about quantitative trading ? also is TA. What a wasted of time this video i

2023 still ppl say "market is efficient" my god...u are full of sh!7

living in a condo
he must have the secret recipe to make millions

and after years following him (+he is coding master ) you will be living in condo

I spent 2 years coding every single strategy based on TA. It's all horseshit. You have one job. Mitigate risk while lowering entropy.

totally disagree.. your arguments are simplistic and you are conflating trader behaviour with analytical inputs... of course traders are lazy yaddayadda that doesn't mean that a non-fundamental approach will make any difference to their outcomes.. .yes trends exist in all time frames [but not at all times] and can be demonstrated... in fact I would challenge you to define "trend" most can't do it........and your definition of price doesn't define price it defines a method of analysing price...also keep in mind technical analysis and a trade plan are two different things.. technical analysis doesn't tell you what to do it tells you what the asset's price has been doing and what the probabilities are for future price levels - Going Dark

TA works because others use TA. Simple.

TA perfectly worked for me for years. i"d bought two houses for now!

When you say that the price of stocks is random, but there it is impossible to verify if a sequence of number is truly random. You can only prove it to be non-random, by finding a pattern.
You could have said with a better probability of accuracy that the price of a stock is very noisy. Or better yet, that the signal to noise ratio is pretty low, specially on the short term. That makes it harder to extract useful information that can be used for making predictions.

THEY will have to make PRICE follow TECHNICALS 30 percent of the time,, bec if not then people will stop using TA and they want people to follow TA

The opinion of a complete loser.

I've always said if TA worked those patterns could be recognized by software and automated trading would always succeed. And then there would be no profit because short term trading profit is made from mispriced assets.😂

What about trends? Volatility clustering?

Anyone that calls himself Jesus?

Technical analysis alone is bullshit. Charts are for ships as WifeyAlpha says. But if you use technicals in conjunction with and secondarily to fundamentals and macro, then they might provide some insight.