Technical Analysis

Why Technical Analysis is useless

I know Technical Analysis is an actual thing in Stock Markets. It’s not something people consider being as a myth.

During my initial days, I used to rely on technical analysis for trading. Sometimes it used to work, sometimes it doesn’t. I am talking about the time when I was in my teenage.

After getting losses and profits, I came to know it is never about charts and movements.

Let me ask you a question, do people’s activities drive the stock market or the stock movements drive the people’s activities? Exactly! that is my point. Charts are useless if people decide to go the other way.

Therefore, it is people’s sentiments that make the trade. But you might say, technical analysis tells us the sentiments in the market.

That’s not true. For example, if the stock is going up. All the indicators are showing the bullish signal. You make a bullish trade position.

Suddenly news comes, the company’s management has a defaulted a huge loan. Guess what? The stock tumbles or nose dives. Now, the signals become useless, right?

Therefore, from the example, I have proven that technical analysis does not guarantee you anything.

I am not completely against the technical analysis, but tell me honestly, how many trade advice works that you get from the financial TV news channels based on technical analysis.

There is this simple thing which I believe, People decide where to move.

Have you wondered why trade go against these indicator signals despite having no news? Because the people who are big enough to change the movement of the stock price wants to go against the trend.

I am sure that technical analysis doesn’t work for me. I came to know after the successful trades I did by examining the sentiments of the people.

You would say how did you do that? The answer is intuition. That’s how I predict the movement of the stock prices. I examine the fundamentals and sentiment of the market.

Read: Technical Analysis: A beginners guide

About the author

Saifullah Khan

Hi there, I am the owner of, read more about me here.

View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *