Proponents of Technical Analysis
To many traders, trading in the direction of the trend is the most effective means to be profitable in financial or commodities markets. John Henry, Larry Hite, Ed Seykota, Richard Dennis, Bruce Kovner, and Michael Marcus (some of the so-called Market Wizards in the popular book of the same name by Jack D. Schwager) have each amassed massive fortunes through the use of technical analysis and its concepts. George Lane, a technical analyst, coined one of the most popular phrases on Wall Street, "The trend is your friend!"
Many non-arbitrage algorithmic trading systems rely on the idea of trend-following, as do many hedge funds. A relatively recent trend, both in research and industrial practice, has been the development of increasingly sophisticated automated trading strategies. These often rely on underlying technical analysis principles (see algorithmic trading article for an overview).
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