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12408983 No.12408983 [Reply] [Original]

Do investment banks and hedge funds unironically draw meme lines on charts when trading? What is these guys' take on TA?

>> No.12408989

bump

>> No.12409102

meme lines are bullshit
charts underneath price charts aren't (MACD histogram, price rate of change, etc)

>> No.12409203
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12409203

>>12408983
You'll never get a straight answer, because of the "Taboo" that surrounds TA.

These are cherry picked examples of but a single aspect of technical analysis, which is a Simple Moving Average, and only the 200 period, at that.

Do you think it's solely a bunch of Retail Traders, with a few grand in our accounts (maybe a bit more for some) who are pushing the market around things like Moving Averages, Structure, and Fibs?

Is that a practical reality? Banks, in particular, shouldn't actually really be speculating that much, and yet, you actually see things like this happening, and you have to wonder...

I highly recommend just observing reality, and making records, rather than listening to what anyone tells you (myself, included).

There is no holy grail trading system out there, and it would shock you to see how bad win rates can be on some profitable trading methodologies.

Markets are a battlefield where TA is used as points of contention/stop-hunting targets, profit taking targets, way-points, position sizing aids, as well as with risk management.

It is very easy to misuse it, and people will often blame a methodology, rather than themselves, when things don't magically make them consistentally profitable.

>> No.12409260

I've worked for investment bankers.

They use a large variety of techniques, TA is only one of them. Yes they draw meme lines but the meme lines are generally paired with news and larger economic factors plus personal insight.

They have certain areas of market expertise (metals, oil, USD/JPY, stocks in xyz industry). They attend industry events very often and subscribe to very expensive news feeds to try to get reliable data ahead of the general market.

They also have friends they call for clarification on certain items (how does restricting export of x impact the price of y).

They use automated trading to some degree but it's still watched 24*7 by junior traders.

>> No.12409269

>>12409203

Thank you sir.

>> No.12409276

>>12408983
They don't, because it is all automated now.

Algorithmic and high frequency trading is what moves current markets. To the brainlets, this is known as "manipulation"

>> No.12409311

>>12409276
Not true, there are still prop traders in major banks, that's sit the old way and try to speculate on prices. They still make a decent living

>> No.12409331

>>12408983
>What is these guys' take on TA?
Its the last step for them...They use qualitative anaysis, PMI, NMI, Consumer surveys ect 'forward looking indicators'.

The day trading is meme now with the algos.

>> No.12409349

>>12409276
As I mentioned here >>12409203:
>There is no holy grail trading system out there, and it would shock you to see how bad win rates can be on some profitable trading methodologies

I recommend having a look at this ama: https://www.elitetrader.com/et/threads/hft-myths.266552/
The trader was asked about win rate:
>A typical ratio for non-equities trading (equities trading is quite different due to rebates) might be something like 90% scratches, 8% winners, 2% losers. Expected profit on the order of 1/10 tick per contract traded overall.

A "scratch" can essentially be thought of as exiting a trade a breakeven. Market Makers contend for Queue Position in the Order Book, to give themselves the best chance of being able to do this. This is why latency is such a massive focus for them.

HFTs can be predatory, there's no doubt. But HFT and algo trading, in general, isn't some overpowering influence on markets for Technical Traders. Human Market Makers are a thing of the past, not the sort of people you want to feel sorry for either, lmfao.

>> No.12410151

>>12408983

they;re too busy insider trading, front running clients and laundering money to bother with meme lines