Technical analysis is not a guaranteed way of predicting share prices. If it was, everybody would use it, and if everybody used it, it wouldn't work anyway.
At best, technical analysis will provide you with a mixed bag of results. Sometimes the technical indicators will come good, and you will make money; at other times, the share price will move in the opposite direction and you will lose.
Expect to win some and lose some. Don't search for the 'perfect system'. It doesn't exist.
Experienced technical analysts recognise that its effectiveness depends partly on factors under their control -
- and partly on factors outside their control:
Perhaps the most pervasive of these is the last. Sometimes you might identify what looks like a clear signal from the charts, then find that the share price moves against you for no apparent reason. You may never find out why. That's when you need to hold your nerve and not tear up the entire technical analysis rulebook.
Technical analysis is as much art as science.
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