How Institutions May Be Using Moving Averages to Align Technicals with Fundamentals
Are moving averages just for retail traders and chart watchers? Not if you're JPMorgan Chase.
While many associate moving averages (MAs) with simple trading strategies, institutional giants like JPMorgan Chase likely use them very differently. Instead of relying on MAs to chase trends, they may use them as confluence tools—where technical signals meet macroeconomic insight, risk models, and long-term strategy.
Here’s how JPMorgan might be using moving averages across their medium- to long-term investments—and what you can learn from it.
📊 1. Moving Averages as Investment Benchmarks
At the institutional level, MAs aren’t just "buy/sell" triggers. JPMorgan likely treats the 50-day and 200-day moving averages as dynamic references that help answer broader questions:
Rather than acting on the average itself, JPMorgan probably uses it to validate investment theses and smooth out the noise.
⚙️ 2. Confluence: Where Technicals and Fundamentals Align
In large portfolios, confluence is king. It’s not just about one indicator—but about multiple factors aligning to strengthen conviction.
MAs might be used alongside:
When a stock reclaims its 200-day MA and fundamentals improve, that’s a green light. When everything lines up, JPMorgan can move with more confidence.
📈 3. A Probabilistic (Not Predictive) Approach
Institutions don’t deal in absolutes—they deal in probabilities. JPMorgan’s quant teams likely test how often certain MA setups lead to favorable outcomes under different market regimes.
So instead of reacting to a crossover, they may ask:
If the odds are strong, they’ll scale in. If not, they’ll wait or hedge. It’s a measured, data-driven approach to timing.
🛡️ 4. Risk Management and Strategic Timing
Moving averages are also incredibly useful for managing portfolio risk. They offer:
MAs help JPMorgan place guardrails around long-term positions—keeping strategy in check while avoiding overreactions to noise.
🔍 Final Thought: JPMorgan Isn’t Chasing Trends—They’re Refining Them
The lesson for investors? Don’t treat moving averages as magic lines. Used well, they become tools of confirmation and control, not prediction.
For JPMorgan Chase, MAs are likely just one piece of a much larger puzzle—blending technicals with fundamentals, data science, and market context to execute with precision.
Are moving averages just for retail traders and chart watchers? Not if you're JPMorgan Chase.
While many associate moving averages (MAs) with simple trading strategies, institutional giants like JPMorgan Chase likely use them very differently. Instead of relying on MAs to chase trends, they may use them as confluence tools—where technical signals meet macroeconomic insight, risk models, and long-term strategy.
Here’s how JPMorgan might be using moving averages across their medium- to long-term investments—and what you can learn from it.
📊 1. Moving Averages as Investment Benchmarks
At the institutional level, MAs aren’t just "buy/sell" triggers. JPMorgan likely treats the 50-day and 200-day moving averages as dynamic references that help answer broader questions:
- Is this trend aligned with the macro picture?
- Is this a real shift, or just short-term volatility?
- How do fund flows behave around these levels?
Rather than acting on the average itself, JPMorgan probably uses it to validate investment theses and smooth out the noise.
⚙️ 2. Confluence: Where Technicals and Fundamentals Align
In large portfolios, confluence is king. It’s not just about one indicator—but about multiple factors aligning to strengthen conviction.
MAs might be used alongside:
- Macro trends (GDP growth, inflation, interest rates)
- Sector momentum (e.g. financials vs. tech rotation)
- Earnings growth and valuation models
- Liquidity flows and volatility data
When a stock reclaims its 200-day MA and fundamentals improve, that’s a green light. When everything lines up, JPMorgan can move with more confidence.
📈 3. A Probabilistic (Not Predictive) Approach
Institutions don’t deal in absolutes—they deal in probabilities. JPMorgan’s quant teams likely test how often certain MA setups lead to favorable outcomes under different market regimes.
So instead of reacting to a crossover, they may ask:
"How often does this setup succeed, given current economic conditions?"
If the odds are strong, they’ll scale in. If not, they’ll wait or hedge. It’s a measured, data-driven approach to timing.
🛡️ 4. Risk Management and Strategic Timing
Moving averages are also incredibly useful for managing portfolio risk. They offer:
- Clarity in volatile markets
- Timing cues for rebalancing
- Visual structure for entries/exits
MAs help JPMorgan place guardrails around long-term positions—keeping strategy in check while avoiding overreactions to noise.
🔍 Final Thought: JPMorgan Isn’t Chasing Trends—They’re Refining Them
The lesson for investors? Don’t treat moving averages as magic lines. Used well, they become tools of confirmation and control, not prediction.
For JPMorgan Chase, MAs are likely just one piece of a much larger puzzle—blending technicals with fundamentals, data science, and market context to execute with precision.
💡 Pro Tip: You can apply the same idea to your own strategy—use moving averages to validate your thesis, not to drive it. Confluence is the key.
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Get access to our exclusive tools: candelacharts.com
Join our community: discord.gg/etGSTepqbu
All content provided by CandelaCharts is for informational & educational purposes only.
Join our community: discord.gg/etGSTepqbu
All content provided by CandelaCharts is for informational & educational purposes only.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.