Technical analysis of stocks is a way of analyzing stocks, commodities, currencies and even anything that has financial value. It uses past price movements to predict future price movements.
However, it is important to keep in mind that technical analysis of stocks will not be 100% accurate all the time. For example, if you bought stock XYZ at $100 per share last year on January 1st because you saw an indicator saying it would reach $150 per share within three months, your prediction may have been incorrect simply because no one can say for sure what the market will do. There are too many variables involved that can affect the outcome of any decision-making process – some known and some unknown.
The only sure thing about technical analysis is that it is not absolute.
This is why it can still be useful.
By using technical analysis, you are placing your money at risk because you are basing your decisions on signals that might not work out as expected – but if they do work out, then you stand to gain a lot of money. With this method, the risks should be weighed against the rewards before making any decisions.
There is a place for technical analysis of stocks, but it is important to know what you are doing before using this method. Using specialist brokers is a good idea because they will be able to give you advice based on their experience, knowledge and understanding of the market. Additionally, automated platforms with technical analysis can make decisions in real-time. These are usually called “trading robots” or something similar, and they are gaining in popularity because of their potential success rates.