What's the Goal of Technical Analysis? Does Technical Analysis Work?

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What's the Goal of Technical Analysis? David Paul, Financial Trader comments. If you found value in watching this video, PLEASE LIKE AND SHARE so we can do more! Are you a believer of technical analysis? - Why do you believe it works? Some will argue that research indicates that technical analysis doesn't work or give you an edge. Please comment. Does technical analysis and price action play a part in your ‘trading’ process?

I define it as the study of trends and turning points. I'm looking for a trend and then I want some knowledge when that trend is going to stop - so I look at price and I look at momentum of the price. I use a concept called divergence where if a market is falling and the momentum is rising then there means there could be more downside to come. Similarly if the price is rising but momentum is slowing up, then there is a chance that there is going to be a turn. In technical analysis there are a thousand indicators that measure the rate of change of price; momentum and they are pretty much the same. There is RSI, MACD, stochastics...etc So we can look at technical analysis - we can look at price, momentum, volume and we can look at time - time is the most difficult of the lot. Richard Wyckoff looked very deeply at price and volume and he has done very detailed work merging the two together.

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