Only post material that’s relevant to the topic being discussed.īe respectful. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. Our proprietary strategy for this analysis is primarily based on chart patterns, so it makes the whole process qualitative.
The tools used in our analysis are Pivot Point, Chart Price Patterns, and Elliott Waves. As technical analysis it self is quantitative in nature so we are using its qualitative factors for our analysis. We use technical analysis to gauge the trend. Once a profitable methodology is set, no experience is required for application.īRC long term qualitative trend analysis seeks out qualitative methodology for trend analysis in short to medium and long term time frame. In Quantitative analysis, experience is only required for making preprogrammed logic or strategy. Experience is required for making entry & exit decisions every time for trade execution in qualitative analysis and only experienced traders are able to make profitable decisions. There is no place for emotions in quantitative decisions.ġ0. Emotions may influence entry & exit decisions for qualitative methods. There is no second opinion in quantitative analysis.ĩ. Relying solely on one indicator or combination of indicators generating mechanical signals are quantitative examples. The signals generated from these are subjective and opinions may change. Chart pattern analysis, Elliott wave analysis, support and resistance levels all are qualitative examples. It doesn’t care for quality but seeks out the “quality in quantity”.Ĩ. Quantitative method does not focus on underlying reasons and motivations but reacts 100% to preprogrammed parameters. In technical analysis, qualitative method gains an understanding of underlying reasons and motivations like why the trend is bullish or bearish and also to determine its quality. In general, discretionary trading is qualitative and mechanical trading is quantitative.ħ. Qualitative analysis is a kind of art while Quantitative analysis is pure scientific.Ħ.
Qualitative analysis is predictive (biased) in nature and Quantitative analysis is reactive (unbiased) in nature.ĥ. Technical analysis which is quantitative in nature can also become qualitative or 100% quantitative.Ĥ. In market analysis, fundamental is qualitative and technical is quantitative.ģ. A Quantitative Analysis seeks out the ‘How’, not the ‘Why’ of its topic, seeking out the quantity not quality.Ģ. A Qualitative Analysis seeks out the ‘why’, not the ‘how’ of its topic, seeking out the quality not quantity.
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