Ufuk Altan

World’s markets are considered to have random movements or affected by variables like wars, crisis, pandemics that can’t be calculated for certain. It is very controversial whether fundamental analysis or technical analysis should be utilized on the markets. There are many studies on using machine learning methodologies for financial analysis and stock market price prediction. However, it is usually considered non-beneficial since stock or crypto market does not have a specific pattern. Therefore, rather than utilizing pattern recognition it is possible to build a trading strategy that could determine the lows and highs of the market. To analyze different markets including indices, stocks, crypto, commodity, metal and currency, Yahoo Finance and Binance APIs will be used as data sources. To analyze market movements, causality analysis will be performed using Granger Causality Test and Spearman Correlation Coefficient. Results of causality will be plotted to a causality network graph indicating the possible relationships between markets. Later, VARMA algorithm will be applied using the information that is acquired from causality tests. Simulations will be performed for technical analysis, combining Correlation Analysis and Stochastic RSI to see how it performs in different crypto coins. In the end, it would be possible to have an idea on which techniques are more advantageous on understanding the turbulence of markets and succeeding in the investment world.