For decades, stock traders and other investors have been on the cutting edge of technology. They’re always looking for the slightest advantage that will allow them to be successful. And in recent years, the savviest traders have been relying on big data.
Big Data Improves Technical Analysis
Analysis has always played a significant role in the evaluation of stocks, bonds, and options. Specifically, technical analysis has played a key part. As RJO Futures explains, “Technical analysis is the study of price action and volume through the careful analysis of various different chart types. Modern-day technical analysis looks to expand upon such principles as price trends, moving averages, volume and open interest, support and resistance levels, as well as momentum indicators.”
Until recently, technical analysis has relied on outdated tools – like spreadsheets and rudimentary equations – to provide traders with insights into which trades make sense under a specific set of circumstances. When big data entered the picture, everything changed.
3 Ways Big Data Intersects Trading
Walk through offices on Wall Street today and you’ll notice some stark differences from what was happening 10 or 15 years ago. Let’s take a look at some of the changes that have been brought on by big data: