👍🏻 Advantages & Disadvantages of technical analysis 👎🏻➕Advantages of technical analysis:
⭐ Logic and relative ease of use
All information is available, you only need to familiarize yourself, remember (or keep it handy in digital / printed form) and look at application examples.
⭐It can be used for different markets. (Forex market, stocks market, crypto market etc.)
⭐Majority of users who prefer technical analysis.
⭐There is no need to use all instruments. You can choose what seems understandable and use it.
For example, someone prefers only the graphic part of the technical analysis of the market, while others only work with indicators. There is no clearly better component here, the only thing that can be said is that, when combining methods, technical analysis of financial markets shows better efficiency.
⭐Many technical analysis algorithms have been around for decades.
This means that once a well-designed trading system will work for a long time, if you wish, you can modify it or even translate it into a program form, that is, create an adviser.
➖ Disadvantages of technical analysis:
🤜🏻The relevance and reliability of the information is very important for technical analysis.
🤜🏻The geopolitical situation and any sudden market events are not taken into account.
🤜🏻If suddenly something falls apart, there is no a single indicator that can tell us about it.
On the chart we can see a sudden powerful movement in the market.
🤜🏻You need a certain mindset.
There is almost everything in numerical and graphic form. It's not suitable for everyone.
