How do you DARE saying technical analysis doesn't work?
1) Gap up, bottom tail forms and we have a breakout pivot.
2) Bearish engulf in a downtrend followed by a bearish marubozu.
3) Top tail in a downtrend.
I didn't realize we were in a duck pattern.
For those that don't know a duck pattern means you should stay away from consumer staples and stocks and put money in the banking sector.
>yfw when you go long during a duck pattern
TA is great for short term, less great for long term.
buy and hold shitters don't like to admit the first part because it means they're missing out on money, however. they cope by denying it lmao.
Yeah I read a book comprised of interviews about TA from top hedge funds and banks and the story is usually this.
Also keep in mind, its not just seeing a head and shoulders that convinces them, they have a ton of other indicators and what they seem to spend most time with is volume analysis.
When it comes to their personal investment strategy, they all claim to use both FA and TA.
there is nothing inherently wrong with making predictions from price data but the way a lot of TA proponents go about it just makes it look like a complete joke - big trend following CTAs will claim to use quantitative analysis, they'll not mention TA even though a lot of what they do is based purely on price data... the main reason is simply marketing - TA is perceived as a complete joke by lots of serious institutional investors
>big trend following CTAs will claim to use quantitative analysis, they'll not mention TA even though a lot of what they do is based purely on price data... the main reason is simply marketing - TA is perceived as a complete joke by lots of serious institutional investors
This is true.
Quants build TA into their models all the time. Usually they are power contrarian models based on "machine learning". In the end, no one can match the power of the simple moving average, the best technical indicator in the world.
RSI(2) --weekly-- is the second best for short term modeling. I am drunk so I probably should shut up. I trade energies too.
Pic is the biggest, baddest data mining profiteer in the world.