What's With Technical Analysis

"After I learned over the years, increasingly complex and a lot of input in the trading plan could lead to confusion, frustration, and reduce the victory." (Jim Wyckoff)

"Simple is easier and better." (Stuart Taylor)

Currently, many technical indicators are designed to help traders to analyze price movements. As the Supreme Court or a Moving Average to determine price trends and psychology, MACD to see the momentum of price movement, the RSI for informed and overbought or oversold and others.

However, many technical indicators are used, does not guarantee the traders correctly predict price movements, rather than getting a big profit is even confusion when executing the price because the indicators used to give conflicting signals to buy or sell.

Some Weaknesses of Technical Analysis

1. Technical analysis is biased
Technical analysis is very subjective and this condition can be reflected when we do the analysis. When we analyze the price and the chance prices will go up bullish bias conditions shadowing, and then when the market moves down the technical conditions will indicate down or bearish.

2. Technical Analysis Opens Many Interpretation
Technical analysis or interpretation opens a lot of interpretation. Between analysis and the other one had a different prediction by looking at the same price. Each person can create support and resistance lines are logical to justify their respective positions. In addition, with different time frames will find a variety of different information.

3. Very Late
Technical analysis is often criticized for being too late to provide information. When you run a transaction at the time of analysis was confirmed in long-term period and will find that what you did was too late. Conversely, if you rely on short-term time frame you will find a lot of false signals is only temporary.

4. Always Having a Changing Price Level change
In technical analysis pursued many levels and always changing from one target to the next target, it shows that technical analysis does not have a permanent establishment. For a trade where the exact level is not easy problem. Often we take the wrong decision assumes a price-level resistance to its lowest price or the level of support.

5. Do not Have Certainty
Not all technical signals and patterns are reliable chart pattern. When starting to learn technical analysis we will find patterns and indicators that do not support each other. For example, we will do the cells because the pattern is formed Double Top and the price through the neckline. But after we see the indicator was not showing confirmation. We begin to doubt lest the price at which we do sell is a price support to form a pattern of Triple Top.

Conclusion:
In addition to having many advantages Technical Analysis also found that there are shortcomings that need to be wary of. Therefore it is advisable for traders to use a maximum of two or three technical indicators and as traders we are required to be more flexible.