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Im still new to technical analysis but would like to know if this really works? This whole concept seems to work just because traders believe in it. |
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TA is folllowed religiously by many traders. From my experience TA works better on longer time frame charts such as the daily chart. Alot of price patterns on 1 minute and 3 minute timeframes are not as valid.
TA is the study of price patterns based on human behavior. It uses crowd behavior to its advantage. Remember, TA is not 100% exact science. Trading is a game of probability. As long as you have discipline to honor your stops and ride your winners you will come out ahead.
I don't rely heavily on TA for my trading. But some of the most powerful trading signals come when price patterns line up with pivot points. These setups I will take 100% of the time.