Technical Analysis
Definition
Technical analysis is the study of price movements and trading volume to evaluate and forecast market trends. Instead of focusing on company fundamentals or economic indicators, technical analysts use charts and statistical tools to identify patterns and momentum in asset prices.
Why It Matters to Investors
- Helps identify entry and exit points based on historical price behavior
- Can be applied across all asset classes and timeframes
- Useful for short-term traders and long-term trend followers alike
- Relies on actual market behavior, not forecasts or opinions
- Can complement or replace fundamental analysis depending on the strategy
The TiltFolio View
TiltFolio Adaptive's strategy is rooted in the principles of technical analysis, particularly trend identification, volatility forecasting, and risk management based on price behavior. While we do not rely on classic chart patterns or discretionary signals, the system uses price data and statistical trends as its core input. We believe price is the cleanest expression of investor expectations. By focusing on what the market is doing, not what it should be doing, TiltFolio Adaptive builds a robust, adaptable portfolio that responds to changing conditions without trying to predict them.
TiltFolio Balanced does not use technical analysis in its allocation decisions. Instead, it maintains its diversified allocation (50% bonds, 30% stocks, 20% gold) regardless of price patterns or technical signals, relying on strategic diversification rather than technical analysis.
Unlike subjective approaches, TiltFolio Adaptive's use of technical analysis is rules-based, systematic, and grounded in data. TiltFolio Balanced provides stability through its systematic approach to diversification without relying on technical analysis.
Real-World Application
• Using moving averages to identify a trend
• Monitoring support and resistance levels for trade setups
• Applying momentum indicators like RSI or MACD to time entries and exits