Re: Why are value investor types so rigidly opposed to TA?
[ QUOTE ]
[ QUOTE ]
there is one logical reason i can think of: one unchanging factor of TA seems to be human reaction to price movements. there are psychological factors that imo cause humans to act a certain way and TA uses proxies (unknowingly possibly) of those traits in its practitioning.
[/ QUOTE ]
Yeah, I'll admit I could see TA working for psychological reasons, which I think is roughly like saying some people can make money with momentum investing or short term timing the market. However, I suspect this is probably specific to individuals (i.e. can't be taught).
Good Mandelbrot story.
[/ QUOTE ]
momentum investing is definitely important though and the psychological factors are part of the fundamental drivers of it.
my old employer constructs a buy/sell signal totally on fundamental relationships (doesn't day trade...takes long view positions etc.) and 1/3 of that signal is basically momentum indicators.
Barron
|