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In stock trading we have different types of tools such as candlestick, RSI, MACD, Parabolic SAR etc to analysis the trading. Is the same tools can be used for the technical analysis of mutual funds also? If yes what are the recommended technical analysis tools for that purpose and what is the advantage.

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A general mutual fund's exact holdings are not known on a day-to-day basis, and so technical tools must work with inexact data. Furthermore, the mutual fund shares' NAV depends on lots of different shares that it holds, and the results of the kinds of analyses that one can do for a single stock must be commingled to produce something analogous for the fund's NAV. In other words, there is plenty of shooting in the dark going on. That being said, there are plenty of people who claim to do such analyses and will gladly sell you their results (actually, Buy, Hold, Sell recommendations) for whole fund families (e.g. Vanguard) in the form of a monthly or weekly Newsletter delivered by US Mail (in the old days) or electronically (nowadays). Some people who subscribe to such newsletters swear by them, while others swear at them and don't renew their subscriptions; YMMV.

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    Remember that if such a service sends half its customers Buy advice and the other half Sell, 50% will be delighted and the others may give them another chance anyway -- especially if they were in the winning half in a previous round. That kind of scam can produce a lot of income for the folks running it while being completely worthless. When paying for advice, be very careful to deal with reputable organizations ... and always remember that there past performance of advisors, like past performance of stocks, is no guarantee of future results.
    – keshlam
    Jun 19, 2015 at 13:21
  • Re technical indicators, there's no inexact data or shooting in the dark. At the end of the day, the mutual fund values its assets and liabilities to determine its NAV which represents the fund's value and is an accurate data point. TA indicators are applied to the fund's closing price the same way they are applied to individual stocks or ETFs. The shooting in the dark applies to someone trying to do some sort of a fundamental analysis of the holdings of the fund since the holdings are not reported day to day. The newsletters base their recommendations of fundamentals, not technicals. Aug 10, 2020 at 15:56

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