Do large banks and institutions use TA to profit?

Turveyd said:
Didn't realise your a BB player, moved to that style myself, it's surprisingly valid!!
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Yes certainly. In fact, it is the first thing I look at and I look at muliple time frames to help determine if continuation, bounce or reversal is likely. Initial emphasis is placed on the longer time frame, and I use my analyses to determine trades on lower time frames.
 
Visaria said:
Yes, they do. Every single bank and institution out there looks at price charts, so by my definition they are use TA in the decision making process to make profits. Only the losing firms like Victor Niederhoffer and his ilk don't look at charts. Amongst my hedge fund manager and managed accounts friends, all look at price charts. No exceptions.

Do they all look for cups and saucers and teaspoons and lumps of sugar patterns? No. Some might but i personally don't know any that do. I believe that Peter Brandt, a very successful manager (40%+ pa over decades) uses solely very traditional TA, like the stuff you find in Edwards and Magee. It works for him.

So if not looking at cups and saucers, what are they looking at? They are just looking at what the market has done. Maybe they are looking for trends, looking for points at which to start buying/selling and so forth. I assure you even die hard fundamentalists like Warren Buffett or Jim Rogers or Howard Marks look at a chart to see WHERE they would like to buy or sell even though the decision to buy or sell has been made from fundamental analysis.

Btw, AFAIK, there are NO proprietary desks of traders at banks. The Volcker rules finished that business off.
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Good points Visa ia ;
i thought it[IBD] was cups + handles- you may have found a NEW pattern.LOL Another advantage big banks have; big ads.That way, BAC can get an article in Fortune magazine, doing snake oil fundamentals+losing lawsuits, and a few great up ticks [on 10 year bear market chart LOL]
Another big problem with TA;
its hard to see RR-railroad tracks top on candle charts.
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Turveyd said:
Didn't realise your a BB player, moved to that style myself, it's surprisingly valid!!
More...
 

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dtrader98 said:
https://www.quora.com/Do-large-trad...nks-and-or-hedge-funds-use-technical-analysis
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One reason'' they dont call it TA'';
my banker dad said''dont tell everything you know''[ LOL] TA is the study of price + volume. All use that,[price + volume] except the chicago trader that pulled out a big bag of cash + told the REALTOR '' buy the house-i dont care what its costs'' BUT even he, meant only one house[volume], + unusual not to care about price.
Wisdom is profitable to direct
 
Was visiting with a banker friend yesterday and he walked me into the trading desk area. I glanced at the computer screens while there and every one of them that had charts open that I could see, had Bollinger Bands up and running.
 
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