Do large banks and institutions use TA to profit?

[globalarbtrader]

FXTraderSK,

It would be helpful if you could quote the poster you are addressing like this:

That's your opinion not a fact. Otherwise you'd be able to back up such a claim with proof, something you are failing to do.

Otherwise it isn't obvious who you are talking to (this is particularly true if several posters have made similar points).

If a poster is 'ignored' by someone else then their quote won't appear in your message, so a nice touch is to add the handle of the person as well.

Many thanks
GAT

 

[murray t turtle]

This issue was resolved awhile ago...not sure why it keeps continuing.

Some banks/institutions use TA while others do not. Yet, those that do use TA, they are not using it the way the typical retail traders use it and they are using it with other resources that the typical retail trader does not have access too. Simply, banks/institutions are not using TA as the sole reason for a trade decision whereas most retail traders that use TA are using it as the sole reason for a trade decision.

How do I know for sure ? I have several close friends and two relatives working in the industry. Some firms use it and others do not use it. An example of a firm that uses TA is Credit Suisse.

The important issue to walk away with is that those professional firms that use TA are not using it the same way as most retail traders use it nor do they rely on TA the same way as most retail traders relies on it.

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Good points; not likely many, or any would use ''only TA'' That would men you trade gold, the exact same way, as SPY,exactly as MSFT which would NOT be very wise @ all.

Put another way, since TA is the study of price + volume; can anyone honestly think anyone with any sense would NOT study TA?? Of course general Ken Haggerty[past manager of the Fidelity trading.....] said many will NOt admit it-LOL. Thanks for the question......................................................................

 

[volpunter]

Taking past prices into account (working with time series) != Technical Analysis (TA). TA has a (in finance) universally agreed connotation and refers to building / giving credibility to indicators that are purely based on past prices and have not proven to have any bearing on future prices. Not only do they have no predictive power but even worse are those indicators a reflection of a lagged past.

But of course you cannot agree ...after all you make a living selling your TA snake oil to some unassuming beginners.

%%%%%%%%%%%%%%%%%%%%%%%%%%
Good points; not likely many, or any would use ''only TA'' That would men you trade gold, the exact same way, as SPY,exactly as MSFT which would NOT be very wise @ all.

Put another way, since TA is the study of price + volume; can anyone honestly think anyone with any sense would NOT study TA?? Of course general Ken Haggerty[past manager of the Fidelity trading.....] said many will NOt admit it-LOL. Thanks for the question......................................................................

 

[romik]

All TA naysayers, please explain this chart to me? Please don't say it's coincidental.

Past data is irrelevant? Really?

 

[emg]

Hi Guys

I would be very interested to know peoples opinions on this. Is TA a load of bull as Surf constantly tells us?

thanks

Everybody knows a little place called co-colo
Co-colo Im trading fast & youre still trading slow
I see your order flow
Way down in co-colo: Pooh Bear



Do u think large banks and institutions used TA? Hell no! TA is for losers!

 

[panzerman]

All TA naysayers, please explain this chart to me? Please don't say it's coincidental.

Past data is irrelevant? Really?

First, your boxes represent different amounts of time, second, sometimes previous support is new support, and sometimes previous resistance is new support. Third, sometimes support/resistance levels are nearly the same price, and sometimes they are different. Looks mostly random to me.

 

[marketsurfer]

All TA naysayers, please explain this chart to me? Please don't say it's coincidental.

Past data is irrelevant? Really?

View attachment 157465

Romik, this is an example oF hind sight bias.

Peace.

Surf

 

[romik]

Romik, this is an example oF hind sight bias.

Peace.

Surf

That explanation won't do, why you bought AMD at multi year support level?

 

[romik]

First, your boxes represent different amounts of time, second, sometimes previous support is new support, and sometimes previous resistance is new support. Third, sometimes support/resistance levels are nearly the same price, and sometimes they are different. Looks mostly random to me.

TRIN looks random, this doesn't.

 

[debitspread]

That explanation won't do

Why won't it "do"? It's exactly correct. Instead of a marked-up chart of past prices, tell us what will happen tomorrow or next week...