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Does technical analysis account for macroeconomic data and debt within a financial system, and if so, how?

  • @D Stanley yes! – user1 May 28 at 16:13
  • @D Stanley thats remarkable. – user1 May 28 at 16:25
  • Your question needs more details to understand what you're after. Despite that, technical analysis involves analyzing data so it can be applied to any kind of data you like. Whether it has any merit is dubious. – Bob Baerker May 28 at 19:01
  • @DStanley - if reopened, do you have an idea for a longer answer than “No”? If so, I’ll offer the 5th vote. If not, and a more comprehensive answer doesn’t really exist, I’m not sure of the point. – JoeTaxpayer May 29 at 0:09
  • Ok go for it... – JoeTaxpayer May 29 at 13:35
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Technical analysis only considers the trends and patterns found in time series data (usually prices and trading volumes). It does not have direct correlations with macroeconomic data, or any other data outside of the price/volume data itself. Meaning, the analysis of the trends do not take into account interest rates, inflation, growth rates, debt levels, etc. like fundamental analysis does.

So it takes macroeconomic data into account in as much as the macroeconomic data is present in the time series itself. But it does not use any external data as part of its analysis.

  • This reminds me of the time TurboTax sent me a 60 word IRS press release and paid me to write a 500 word article. Well done. – JoeTaxpayer May 29 at 14:04

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