What Do Hedge Funds Think of Technical Analysis?

Discussion in 'Technical Analysis' started by SunTrader, Jan 29, 2023.


  1. I didn't realize quantitative analysis, falls under the category of fundamentals. It seems we have different definitions of things, maybe this is where the break down of communication is coming from.
     
    #51     Jan 30, 2023
  2. SunTrader

    SunTrader

    As if you don't stare at your screens whether or not they contain charts, or do you claim to have everything all figured out? o_O
     
    #52     Jan 30, 2023
  3. you need to apply the fundamentals for your intra-day trading, TA is useless.
     
    #53     Jan 30, 2023
  4. themickey

    themickey

    images.jpg
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    I love this shit, absolutely gobsmackingly brilliant. :rolleyes:
     
    #54     Jan 30, 2023
  5. How did you get quantitative analysis = fundamental analysis out of that? o_O
     
    #55     Jan 30, 2023
  6. I’m staring a lot haha. But the actual work is in a quantitative or fundamental analysis and the research around that.

    If you were trying to figure out what’s going on with Boeing … do you… look at the chart and use patterns in prices, retail technical indicators, etc. to figure out if there’s a trading opportunity, what your risk is, and what your price target is? Well okay maybe that’s you’re approach and style.

    But I can guarantee you that funds (MLP, Baly, citadel, Point72) are either (1) analyzing data to find statistical relationships between BA and a benchmark of other securities or (2) reading up on the stock, modeling out revenues and see where they agree/disagree with the street before determining if there’s a play. The sort of data, and models, analysts use are many — I only know a handful, and don’t claim to be expert in this domain. Everyone is clamoring for more information — why handicap yourself by limiting your analysis to the chart?
     
    #56     Jan 30, 2023
  7. hilmy83

    hilmy83

    Didn't really get a chance to sift through the responses, but who actually worked at a hedge fund or managed one? If so, do you use TA? S/R? trendlines? indicators? patterns?

    No point of asking how pro footballers think about playing football from couch potato fat fucks who just watch the games ..
     
    #57     Jan 30, 2023
  8. SunTrader

    SunTrader

    Yup see umm "hedger" Cathy Woods/Ark how not checking a chart to determine when to bail destroys capital faster than the Fed can print it.

    No doubt statistical relationships come into play but seriously can't believe those you mention above care a whit about reading up on a stock. The same stale news/anal-ysts WS sell side uses to bait the gullible public.

    Can't speak for others who have replied to you, but I think mentioned this at least a few other times before - I daytrade - period. And that is why I stare at what is in front of me. Also futures, no stonks. No need for funnymentals and other distractions that you long term folks get excited about. Capiche?
     
    #58     Jan 30, 2023
  9. 1- Cathie wood is a long only mutual fund manager. Also with an aum over 10b she can’t “hit a stop”, or do whatever retail does, unless she wants to break the market lol.
    2- Yes you’re a retail “daytrader” punting e-minis. Congrats.

    But trading at a hedge fund, or other large investment fund, is quite sophisticated and very different from what you do.
     
    #59     Jan 30, 2023
    murray t turtle likes this.
  10. deaddog

    deaddog

    I don't for sure but increasing volume tells me that there is some interest in the stock.
    As for the direction, I look at the chart. Chanches are that if price is increasing on volume that it will continue to increase. Not 100% of the time but enough to move the probabilities to better than 50%.
    I also take into consideration where price is relative to where price has been and the amount of volume traded at different price levels.
     
    #60     Jan 30, 2023