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What is quantitative analysis?

The attempt to represent events and phenomena mathematically and to thereby make reality more understandable is called quantitative analysis.

To quantify something from the real world, an analyst will translate the factors and variables present in a real event into a coding system which will allow it to be represented in mathematical or computational symbology. The quantitative analysis that follows will attempt to create formulas and test them for external validity and replicability.

Technical analysis methods are types of quantitative analysis, and they are usually checked against various other methods to help an analyst decide if trading signals or trends are present. It is wise to complement quantitative analysis with qualitative and fundamental analysis.

Most large investment firms have analysts who conduct quantitative analysis to get insights on market conditions, and industry news might refer to these employees by names such as "quants."

What is Technical Analysis?
Is There Any Merit to Technical Analysis of the Markets?

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