Do large banks and institutions use TA to profit?

[Autodidact]

Banks/Firms have all sort of resources and types, TA, Statisticians, Quants, Mathematicians, Economists, etc.

 

[Turveyd]

My Mom tried trading stocks during the .com time, she lost on 4 consecutive trades and that was it for her - trading short term doesn't work

Your mom, lost the first 4 trades in a row and that proves short term doesn't work.

I make money off short term, not loads sadly, still working upto that sadly.

 

[volpunter]

You wished: They are nowadays called "facilitation desks", at least on the equity side. They are supposed to only warehouse larger blocks of shares that clients try to get rid of but in reality the desks take directional views, trade index arb books to disguise intraday buying and selling (long sell hence the index arb book), and a myriad of other vehicles to take on prop positions. It is very hard to differentiate between true prop positions and "managing client trades", even for their internal risk managers and compliance officers. The same game goes on at banks just under a different name.

Btw, AFAIK, there are NO proprietary desks of traders at banks. The Volcker rules finished that business off.

 

[volpunter]

I have to full heartedly agree with that.

False and misleading.

TA at banks purpose is to market their products. They don't make decisions from TA. It is also used to be explain market movements to the press and staff. Nothing to do with trading or position choosing.

Why haven't computers rendered trading charts completely irrelevant for even retail traders?

Traders use computers to draw charts then interpret them? Computers don't read charts-- so why use them at all? U can get exact pattern recognition programs for near free , so why introduce the flawed chart into the mix?

There is only one reason and i call it the slotmachine attraction. You like looking at the pretty colors and shapes. Just like the old ladies at slot machines. Ridiculous!

 

[Buy1Sell2]

You see those circled 2 little histogram bars in MACD? In my experience when you find just 1 bar (best) traders' scanners jump at it, as this is one of the best signs of weakness or strength (the opposite formation). Bog standard old MACD. Check it out.

EXACTLY RIGHT

 

[Buy1Sell2]

TA's purpose to provide a sellable product to newbies.

INCORRECT

 

[Sergio77]

they certainly do not use simple moving average crossovers either. Maybe at the times the "turtles were born". But certainly not today. They call it "strategies with quantitative overlay". Sounds a lot better than "moving average crossover", no?

Let him dream. He wants to become a CTA probably with a moving average, a filter and maybe a backtesting arcade.

 

[Turveyd]

INCORRECT

Lol that means im right and lawrence agreeing with you verifies it, total idiot!

 

[romik]

Technical analysis is all to do with price oscillations/trends forecasting, you don't have to use any indicators, again apples and oranges, you keep referring to TA as if it was a marketing tool kit full of indicators, etc. If your trade decisions are based on price performance, then you are using TA.

 

[Turveyd]

Technical analysis is all to do with price oscillations/trends forecasting, you don't have to use any indicators, again apples and oranges, you keep referring to TA as if it was a marketing tool kit full of indicators, etc. If your trade decisions are based on price performance, then you are using TA.

So everyone that ever looks at a chart is using TA, errrr,NO comes to mind.