What do hedge funds think of technical analysis?
technical analysis
- Thread starter eleanorK80
- Start date
The hedge funds all have the tools plus the analysts to make decisions on where to buy stocks. They are like elephants in a pond though. Their buys have to be done slowly over months so as not to inflate and rocket the stock price of the stock they are buying. Learn about the stockmarket phases of accumulation, mark up, distribution, mark down. It will tell you what action to take. Hedge funds buy at the bottom in the accumulation phase. Most of the big moves happen in the mark up phase after it breaks out of the consolidation and price heads higher.
Please not again. The issue is settled. Those who make money, especially professionals, don't rely on technical indicators. Those who don't know, mostly beginners but also the hopeful who jump from one kibble to the next that is fed to them, try to find value in TA.
They claim all sorts of things but are never able to back up their claims with any facts. So, let them be. We need those who are willing to lose in exchange for feeling they have something to hold onto.
They claim all sorts of things but are never able to back up their claims with any facts. So, let them be. We need those who are willing to lose in exchange for feeling they have something to hold onto.
Sometimes people show their complete ignorance
if they think Professionals are not using TA.
There is no algorithm anywhere on the planet that's
not based upon some from of TA.
And TA is not indicators, but tools used in the process of TA.
Any technical level (i.e. daily, weekly, monthly S/R, COT reports,
price confluence, mean reversion, time series, etc etc) are all based upon
TA
If they never used it, they would never hire anyone with a CMT designation,
and I know for a fact those people are hired at Hedge Firms.
EleanorK80, some hedge firms are a 1 man operation, and some
are just a few people. Many are large firms, but not all.
And you can bet they definitely use TA
if they think Professionals are not using TA.
There is no algorithm anywhere on the planet that's
not based upon some from of TA.
And TA is not indicators, but tools used in the process of TA.
Any technical level (i.e. daily, weekly, monthly S/R, COT reports,
price confluence, mean reversion, time series, etc etc) are all based upon
TA
If they never used it, they would never hire anyone with a CMT designation,
and I know for a fact those people are hired at Hedge Firms.
EleanorK80, some hedge firms are a 1 man operation, and some
are just a few people. Many are large firms, but not all.
And you can bet they definitely use TA
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You can't make a dime without using TA unless you blindly buy and hold or have inside information. The most successful fund ever was heavy into TA. I am a purest so would go so far to say that there is ONLY TA and news and earnings reports are irrelevant. They only serve to fullfil the TA. I believe the Renaissance fund had the same philosophy where they flat out ignored news and earnings reports.
https://en.m.wikipedia.org/wiki/Renaissance_Technologies
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Well a small Retailer certainly shouldn't rely on FA ... or trade like Buffett books.
TA works well on longer timeframes for Index trading.
You really should ask what the members of ET think of your asinine questions? I mean what the hell is this? This place ain't no Jeopardy.
lol TA is such a large umbrella. TA is absolutely fine and can provide lots little to big edges, a lot of it also depends on the skill of the person using it, as much as the actual TA. Market context along with understanding the more nuance price action and changing patterns in price delivery (essentially experience) is paramount and still remains king.
Pointless debate regardless if ta works or not, like no one knows anything about actual intra-day active trading. Truly. Even a lot successful people don't know that much. Some of their edges or ways they make money have very little to do with the market directly and certainly nothing to do with someone who's looking to trader a smaller account and make exponential gains. Sure there's exceptions of course, but rare.
Pointless debate regardless if ta works or not, like no one knows anything about actual intra-day active trading. Truly. Even a lot successful people don't know that much. Some of their edges or ways they make money have very little to do with the market directly and certainly nothing to do with someone who's looking to trader a smaller account and make exponential gains. Sure there's exceptions of course, but rare.