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QuantSchool: Difference between forecasts and analysis


Core Definitions

Market Analysis

The process of examining market data to understand current conditions and potential movements.

Market Forecast

A specific prediction about future price movements based on analyzed data.

Key Differences

Characteristic Analysis Forecast
Purpose Understand market conditions Predict future price action
Output Information about current state Specific price targets
Timeframe Can be retrospective Always forward-looking
Certainty Describes probabilities Makes definitive calls

QuantWave's Approach

Analysis Phase

  • Identifies current market structure
  • Detects patterns and trends
  • Assesses risk parameters

Forecasting Phase

  • Generates specific price targets
  • Provides entry/exit points
  • Assigns probability scores

Practical Example

Analysis Output

"The market is currently in an uptrend with strong volume support but showing overbought conditions."

Forecast Output

"Buy at $50.25 with target at $53.80 (7% upside) and stop at $48.90 (3% risk), 75% probability."

Why Both Matter

  • Analysis provides context for forecasts
  • Forecasts turn insights into actionable plans
  • Together they create complete trading picture

While market analysis helps understand current conditions, forecasts translate this understanding into specific trading opportunities. QuantWave systematically converts analytical insights into precise, probability-weighted forecasts for clearer decision-making.