TA tries to capture market psychology and sentiment by analyzing price trends and chart patterns for possible trading opportunities, but it's misguided and lacks a theoretical basis.
When put to scientific tests it doesn't hold up against empirical evidence. Analysts consistently looking at different indicators and hedge their analysis. Often going BACK to data and drawing lines saying LOOK LOOK it broke the barrier line trend hill thing! SEE!
Listen - if this stuff actually worked - we would have giant AI computers dedicated to learning how to do it - oh that's right we do - and you know what happens when we plug them in to the system? The system figures it out and reacts differently. The global mood changes on a dime and all TA goes out the door with it.
SORRY, BUT TA IS NOT OBJECTIVE! IT CANNOT BE RELIED UPON!
Let me be clear, there ARE definite patterns within the stock market, and if they are recognized they can be successfully traded upon, but analyst cannot separate themselves from their beliefs and pre-dispositions, they selectively, and possibly sub-consciously, choose charts and TA indicators that confirm what they have already concluded.
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