This article was written by Miles Grauberd – Financial Analyst at I Know First.

Highlights:

• Today, approximately 70% of U.S. equity trading volume is executed by algorithmic or AI-powered systems.
• Hedge funds and institutional investors increasingly use AI for faster, more precise trading.
• Approximately 60% of hedge funds use technical analysis as part of their trading strategies.

Artificial Intelligence

Since 2022, artificial intelligence has transformed how we work, create, and make decisions. From writing and data analysis to predictive modeling, AI is reshaping industries worldwide. One of its most impactful applications is in financial markets, where AI algorithms are revolutionizing stock trading. At I Know First, we’ve developed an advanced AI algorithm that predicts price movements across over 50 global exchanges, offering forecasts across multiple time frames. This technology empowers both everyday traders and institutional funds to make smarter, data-driven trading decisions.

Technical Analysis

Technical analysis is a method of forecasting future price movements by analyzing historical price data and trading volume. Unlike fundamental analysis, which evaluates a company’s financial health, technical analysis focuses on charts, patterns, and indicators such as moving averages, Relative Strength Index (RSI), and Bollinger Bands. Approximately 60% of hedge funds use technical analysis as part of their trading strategies, often alongside other methods like fundamental or quantitative analysis. Traders use these tools to identify trends, support and resistance levels, and optimal entry or exit points for short-term trades. By studying market behavior, technical analysis provides insights into potential price movements without relying on company fundamentals.

AI’s Dominance in Trading

AI-powered systems have become a driving force in financial markets. Today, approximately 70% of U.S. equity trading volume is executed by algorithmic or AI-powered systems, a significant increase from 30–40% in the mid-2000s. Institutional investors, hedge funds, and proprietary trading firms increasingly rely on AI to execute high-frequency trades, optimize portfolios, and identify market opportunities. These systems often incorporate technical analysis principles, such as pattern recognition and trend analysis, to make decisions at lightning speed.

The rise of AI-driven trading amplifies the importance of technical analysis. By design, these algorithms capitalize on technical patterns, which increasingly influence market behavior. Consequently, technical signals gain greater reliability, enhancing the value of technical analysis as a critical tool for traders.

Combining AI and Technical Analysis for Smarter Trading

The synergy between AI and technical analysis offers traders a powerful edge. While technical analysis provides a framework for interpreting market data, AI enhances this process by sifting through vast amounts of information to identify high probability opportunities. For individual traders, the sheer volume of stocks can be overwhelming. Traditional stock screeners have limitations, often relying on rigid criteria that may miss nuanced opportunities.

This is where AI shines. By analyzing historical and real time data, AI algorithms can pinpoint stocks with strong buy or sell signals across various time frames. Traders can then apply technical analysis to this curated list, using indicators and chart patterns to refine their decisions and identify the best entry or exit points. This combination leverages AI’s data-processing power with the trader’s expertise in reading market signals, creating a streamlined and effective approach to trading.

How I Know First Enhances Trading Decisions

I Know First’s AI algorithm stands out by delivering tailored stock predictions for traders and funds. The platform sifts through global markets to identify the most promising opportunities, whether you’re interested in specific sectors, popular stocks, S&P 500, or high-volatility assets. Unlike generic stock screeners, I Know First’s AI leverages complex algorithms, trained on 15 years’ worth of stock data and combined with predictive models, to deliver a shortlist of high-potential stocks.”

Traders can then apply technical analysis to these recommendations, evaluating charts and indicators to confirm trades. For example, if I Know First highlights a stock with a strong buy signal, a trader might use technical analysis to verify a bullish trend through a breakout pattern or a rising RSI and pinpoint the exact time to enter the trade. This hybrid approach empowers traders to make informed decisions with greater confidence.

Why This Matters for Traders and Funds

The integration of AI and technical analysis is transforming trading for both individual investors and institutional funds. For everyday traders, I Know First’s algorithm simplifies the process of finding high-potential stocks, saving time and reducing guesswork. For funds, the ability to process vast datasets and combine AI-driven insights with technical strategies enhances portfolio performance and risk management.

As AI continues to dominate financial markets, technical analysis will remain a cornerstone of trading strategies. By combining I Know First’s cutting-edge AI with the proven principles of technical analysis, traders can navigate volatile markets with precision and achieve better outcomes.

Conclusion

The AI revolution is reshaping the financial world, and tools like I Know First’s AI algorithm are at the forefront of this transformation. By pairing AI’s predictive power with technical analysis, traders can unlock new opportunities and make smarter decisions. Whether you’re an individual trader or managing a fund, this powerful combination offers a competitive edge in today’s fast-paced markets. Visit I Know First’s website to learn how our AI can elevate your trading strategy.