Technical analysis has been a cornerstone of my journey in the markets, which spans over a decade now. I have learnt a lot over the years sometimes by voluntarily by studying books, videos and courses and sometimes involuntarily when markets gave me a slap on the wrists for being complacent.
But this journey has been great and technical analysis has now become my life. I am crazy about it and thought it would be nice to share my views on this huge topic...
What is technical analysis? In simple words, it is the study of prices, how they behave and what they indicate about what the market is doing right now. Some people boast of having predictive powers and go on giving targets and predicting future market developments. The funny part is they say technical analysis of some sort helps them do this, but I completely disagree with them and warn you to stay away from such charlatans...
All technical analysis can do is give you the current market situation, who is winning right now buyers or sellers, that's all. And this also is possible because prices are nothing but traders behaviours reflected in their actions of buying and selling. So technical analysis, notwithstanding all the maths involved in it, at the end of the day is the analysis of human behaviour. Price is just a proxy...
