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I mean, I get that they are philosophically very different (if not opposed), but I really do not understand the immediate dismissal of all things TA by a lot of value investors I have come into contact with recently.
Friday I met with a group of analysts at a value investing firm, and when I told one of them about my interest in TA, he chuckled and said to not even mention it to the other analysts.
That is just one anecdote, but it seems like I have been getting this a lot lately - and I am hardly an opponent of value investing.
Why are those types so ready to dismiss TA as worthless? How could so many people use it so successfully if it is really all smoke and mirrors? And why do valuation and TA have to be mutually exclusive when it comes to making buy/sell decisions? What's wrong with using a combination of the two?
Any insight would be appreciated.
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There is no imperical eveidence to show that TA can give an investor an edge in the market. With computers it would be very easy to back test any theory you want, why is there no proof that TA works?
Value investing meanwhile has a strong argument for its success:
http://www1.gsb.columbia.edu/valuein...ves/DOC032.PDF