This is our two pence on technical analysis. We think it is a complete waste of your time to use these strategies to trade and we see it as a pseudoscience. It is easy to spot patterns after they have emerged, but you can’t use past patterns to guess at what will happen in the future.
Humans have emotions, which makes us varied and unpredictable in nature. The markets levels are set by humans who are trading on them which make them as unpredictable as we are! If the markets were perfectly predictable, then there would be no way to make money on it as the markets would reflect their true value straight away.
Don’t waste your time studying horrendously complicated trading methods or look for complex relationships on a graph, just do some good ole’ fashioned research instead and apply your knowledge with a bit of logic!
However, we are not saying using charts is a waste of time. They are good for looking at the price ceilings and price floors to help work out your stop loss levels, entry and exit points, but that is it!