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Chart analisys

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I've been reading a little about this lately. Isn't this some kind of voodoo? trying to forecast the market by making some numbers over a chart? how is this legit?
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Yes it is garbage. Anything you can do, can be done 10^600 times faster by a super computer HFT fund.

Stick to value based fundamental investing
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>>1762813
Yes, and it's mostly done by people who pretend to know about investing, but actually don't. First of all, you should be aware that chart history contains ZERO information regarding future probability and it's all actually self-fulfilling prophecy, where people think X will go up because of Y so they buy into it, causing X to go up but not because of Y. Second, this >>1762823
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>>1762823
>Yes it is garbage. Anything you can do, can be done 10^600 times faster by a super computer HFT fund.

Yeah but what exactly do they do besides trading faster? I doubt they have some holy grail algorithm that keeps generating 100% annual returns. And if that really was the case why hasn't any hedge fund compounded a couple of billion to trillions yet?
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>>1762906
Value investing
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>>1762813

Don't conflate technical studies with chart pattern drawing.
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ow wow great yes, it kept on going but then people on smaller timeframes saw mmm a leetle bounce. thats a danger, and looked what it did! kept on some time after the bounce downward. TRAPP
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Don't listen to those losers. I have excellent results with my chart analysis after booking a $12k course. Definitely worth it! I think what most people get wrong about technical analysis is that you have to simultaneously sacrifice a chicken. Chart analysis ONLY works in conjunction with entrail reading! Don't let anyone tell you otherwise. 100% guaranteed results!
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>>1762906
HFT profits from 1) speed by being the closest to the exchange so first to receive prices and because algos also the first to act, seconds/minutes faster than any human trader and 2) volume.

The frequency of trades they can pull means they can be programmed to try new strategies every n trades and if successful re-inforce that.
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>>1762906
>And if that really was the case why hasn't any hedge fund compounded a couple of billion to trillions yet?
because once you start trading size you start to experience the constraints of liquidity in the market. with any algo that does scalping / market making EVERY tick matters. so if the size of your algo overwhelms the market it will cause you to more often miss a tick. just because an algo is profitable trading 10 lots it doesnt automatically mean it will work the same at 100 or 1000 lots. you can just scale to infinity, it sounds great in theory but it doesnt work in practice.
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>>1762813
It's basically black-magic voodoo akin to reading chicken bones, like anon implied, but it kinda works just because people believe it works. People like hedge fund managers and probably whoever is in charge of your mom's retirement account,

There is some merit in things like floors, ceilings, ect, because mainstream value investors will start to sell if it 'seems unstably high' or buy if it seems like a 'good price', but generally news moves stock prices and not much else. Even value investors can sit on a 'great bargain' for years if it's a company or industry with a poor reputation.

The markets don't make much sense so it's dumb to try to do analysis on charts based on the fallicy that markets are perfect when in reality they are deeply flawed. Mostly because investors are fucking retards.
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>>1763220
This. Major retail investors will move a price just trying to buy or sell stock. Also they are limited by law in many cases in what percentage they are allowed to buy into a single stock.

This is the primary reason why the adage says 'nobody can beat the market' because institutional investors have so much much they must invest that only large, boring companies can absorb the amount of cash. They basically ARE the market when they get to a certain point. They can't go heavy into fast-growing small caps.

Also it's why some huge investment firms like BlackRock put money into some of the worst companies, they have nowhere else to put it. So don't take it as a veryy good sign that BlackRock invested more into a stock you hold.
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>>1762995
Which course do you recommend?
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>>1763354
"Advanced Financial Clearvoyance" by Lady Mystiqua. I don't really know how you'd get in contact with her. She just keeps sending me letters with return envelopes in them and every few months the address changes.
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>>1763363
She sounds tits
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>>1763233
4-X can maintain them
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>>1762813
It has no basis in statistics or mathematics. It's bullshit.

If you want the real deal, start learning about Bayesian forecast models.
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>>1763363
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>>1762813
stay poor, turkey.
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>>1763226

this is pretty interesting. a meme-fueled economy
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>>1764517
Right so its like they all see the same 'market signal' 'oh, its a bullish engulfing morning star hammer candlestick better buy this stock!' and when dozens of managers see and do the same thing it and push money and moves the market in the direction they wanted it to.

Only reason it actually works more than 50% of the time.
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>>1763363
Wow, sounds good. Just like my Amway job.
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>>1764527
ride the wave
Thread posts: 23
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