Technical analysis is generally favored by novice traders because of its convenience in providing entry signals. However, as trading experience increases, the more we become aware of the weaknesses of technical analysis. Weaknesses of technical analysis include:
a.chart will only display price movements from the past to the present. This means that no matter how accurate it actually is, it will not predict where the price will move
b. relatively subjective
between fellow traders can open different positions
c. it is rare to find perfect trading signal conditions
like we practice motorbikes in the field, of course it will be different when we drive it in a crowded area of vehicles
And here's how to overcome your technical analysis weaknesses:
1. apply money management
2. Use stop loss and take profit
3. diversify trading risk
4. record and develop trading systems using trading journals
5. learn to use the forex calendar
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