Forex Zone - Forex Forum

2 Weaknesses of technical analysis

Discussion started on Forex Education

  • Hero Member
  • Posts: 2167
  • Points: 2732
  • Likes Received: 3
  • Reputation: +0/-11
Technical analysis in forex trading has limitations and weaknesses that traders should be aware of. It relies solely on historical price and volume data, and does not consider fundamental factors such as economic indicators or geopolitical events. It also cannot account for sudden market shifts or unexpected news, and may produce conflicting signals in volatile or range-bound markets. Moreover, technical analysis requires expertise and experience to interpret accurately, and can be subject to interpretation bias and false signals. Therefore, traders should use technical analysis in conjunction with other analysis methods and risk management strategies.
#166 - March 03, 2023, 09:14:48 AM

  • Hero Member
  • Posts: 66356
  • Points: 686
  • Likes Received: 58
  • Reputation: +53/-46
the use of rsi is also quite good because with it it can be consistent
#167 - March 05, 2023, 12:36:19 AM

  • Hero Member
  • Posts: 68342
  • Points: 745
  • Likes Received: 100
  • Reputation: +18/-46
I used to use RSI but now I focus on price action
#168 - March 06, 2023, 02:34:05 AM

  • Hero Member
  • Posts: 1084
  • Points: 1599
  • Likes Received: 3
  • Reputation: +0/-4
The bad thing about using technical analysis is at the beginning or end of the year because there is often speculation so that technical analysis doesn't really work
#169 - March 06, 2023, 05:01:33 AM

  • Hero Member
  • Posts: 32214
  • Points: 670
  • Likes Received: 46
  • Reputation: +51/-45
use historical data so you can see price movements
#170 - March 06, 2023, 05:27:40 AM

  • Hero Member
  • Posts: 68342
  • Points: 745
  • Likes Received: 100
  • Reputation: +18/-46
I hope that when you use RSI, you should add other indicators as well
#171 - March 08, 2023, 12:48:42 PM

  • Hero Member
  • Posts: 66356
  • Points: 686
  • Likes Received: 58
  • Reputation: +53/-46
Later you can use another indicator like whatever you want
#172 - March 11, 2023, 01:56:42 AM

  • Hero Member
  • Posts: 3553
  • Points: 4078
  • Likes Received: 23
  • Reputation: +1/-0
In my opinion technical analysis does have weaknesses, if technical analysis has no weaknesses then of course everyone will use technical analysis
#173 - March 11, 2023, 02:13:37 AM

  • Hero Member
  • Posts: 32214
  • Points: 670
  • Likes Received: 46
  • Reputation: +51/-45
You can use data anywhere and can use indicator data for this
#174 - March 11, 2023, 03:05:45 AM

  • Hero Member
  • Posts: 68342
  • Points: 745
  • Likes Received: 100
  • Reputation: +18/-46
using rsi data is a good thing so you can maximize it
#175 - March 12, 2023, 06:01:50 PM

  • Hero Member
  • Posts: 66356
  • Points: 686
  • Likes Received: 58
  • Reputation: +53/-46
You can use any technique that works well
#176 - March 13, 2023, 03:34:15 AM

  • Hero Member
  • Posts: 32214
  • Points: 670
  • Likes Received: 46
  • Reputation: +51/-45
using the RSI cannot be considered easy, some have to use other indicators
#177 - March 13, 2023, 04:51:20 PM

  • Hero Member
  • Posts: 66356
  • Points: 686
  • Likes Received: 58
  • Reputation: +53/-46
For me, using technical tools like this is really necessary for me for everything.
#178 - March 14, 2023, 12:26:27 AM

  • Hero Member
  • Posts: 3553
  • Points: 4078
  • Likes Received: 23
  • Reputation: +1/-0
Technical analysis is still an analysis and it is impossible for all the accuracy to be correct, therefore make your analysis look like it will be right forever
#179 - March 14, 2023, 12:28:12 AM

  • Hero Member
  • Posts: 32214
  • Points: 670
  • Likes Received: 46
  • Reputation: +51/-45
using subject-relative data is indeed better used to carry out a reversal analysis
#180 - March 14, 2023, 01:20:42 AM

Members:

0 Members and 1 Guest are viewing this topic.