Technical analysis (TA) tries to capture market psychology and sentiment by analyzing price trends and chart patterns for possible trading opportunities. ... Common myths about TA include it being only for day trading and only used by individual traders.

Is there any evidence for technical analysis?

Academics such as Eugene Fama say the evidence for technical analysis is sparse and is inconsistent with the weak form of the efficient-market hypothesis. Users hold that even if technical analysis cannot predict the future, it helps to identify trends, tendencies, and trading opportunities.

Is technical analysis really useful?

Yes, Technical Analysis works and it can give you an edge in the markets. However, Technical Analysis alone is not enough to become a profitable trader. You must have: A trading strategy with an edge.