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Are there any mutual funds that primarily use technical analysis as their strategy?

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Question added by Nuha Ali , writer , freelance
Date Posted: 2014/04/27

Technical analysis is as many other, a very important tool when deciding which assets to invest on, and even if there are traders that use it as their main investment decision model, it is one tool in a very big toolbox. Often, you are going to hear about many fund managers telling you that technical analysis alone can't be the only indicator for taking investment decisions, as the bare minimum of fundamental and financial statement analysis is necessary, specially   when investing on equities. I worked for a trading firm and I can tell you1st hand, that there are an incredible amount of traders that have strong investment records relying mainly on a technical outlook. Technical analysis main argument against fundamental analysts, is the fact that the price action already includes all the fundamental events, to say so, charts should already give you an outlook on what is going to happen, and the current market condition without even having to know what is driving the price action. Fundamental analysis helps you to have a clear outlook on what are the reasons behind price movement. I use fundamental analysis mainly for trend following, knowing what is happening in the market helps me to have a clear outlook on the momentum and how much should a market continue trending.

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