Re: If Technical Analysis works, why isn\'t there a mutual fund for it?
This is something of an ill-informed theory, so take it for what it's worth.
If TA is as widely accepted as has been claimed, there could be something of an "Emperor's New Clothes" phenomenon at work. If Stock X exhibits a cup and handle pattern, everyone "knows" that it will be rising soon, so everyone buys it... lo and behold, it goes up. Reverse it for the head and shoulders pattern. But if everyone "knew" that a head and shoulders pattern meant a stock would rise, then it probably would rise.
In effect, it's a mini-bubble or a mini-selloff. TA experts gain some at the expense of people who ignore the theory or people who are too slow to buy or sell. Long term price movements are of course determined by fundamentals.
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