#CurrencyPairPrediction Limitations of ARIMA for Forex Limitation Why it matters Stationarity assumption Markets are often non-stationary with structural breaks. No exogenous events Cannot handle sudden shocks (war, economic crash). Short memory ARIMA relies on past few lags, ignores broader context. Limited complexity Cannot capture complex non-linear patterns. Thus, ARIMA is great for baseline models, but often combined with more advanced models for serious trading.