Forex Zone | Forex Forum

How to overcome the weakness of technical analysis

Discussion started on General Forex Discussion

  • Posts: 35
  • Points: 537
  • Likes Received: 0
  • Reputation: +0/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
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


Linkback: https://www.forex.zone/general-forex-discussion/1/how-to-overcome-the-weakness-of-technical-analysis/3631/
#1 - December 06, 2021, 10:13:14 PM

  • Posts: 619
  • Points: 184
  • Likes Received: 8
  • Reputation: +0/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
In my opinion, we should not be too fanatical about technical analysis and once in a while we should also look at fundamental analysis, because what moves the market more is the fundamentals.
#2 - December 06, 2021, 10:31:03 PM

  • How to overcome the weakness of technical analysis in General Forex Discussion_index
  • Posts: 2600
  • Points: 165
  • Likes Received: 169
  • Reputation: +1/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
Overcoming weaknesses in indicators, we can't just trick it, what we can do is combine several different indicators between indicators that analyze for trends and indicators that analyze for saturation points
#3 - December 06, 2021, 10:55:49 PM

  • How to overcome the weakness of technical analysis in General Forex Discussion_index
  • Posts: 4506
  • Points: 1946
  • Likes Received: 348
  • Reputation: +10/-5
How to overcome the weakness of technical analysis in General Forex Discussion_xx
What you can only do is when overcoming an error, you must know how to see the indicators that really are when you do the analysis and that analysis should be done as your companion.
#4 - December 08, 2021, 02:42:04 AM

  • How to overcome the weakness of technical analysis in General Forex Discussion_index
  • Posts: 2360
  • Points: 2
  • Likes Received: 187
  • Reputation: +4/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
for that you must know the importance of using fundamental analysis and you must know to combine some knowledge such as candlestick patterns or chart patterns in trading So you have to understand about it all not only relying on technical analysis that uses indicators
#5 - December 10, 2021, 06:44:27 AM

  • Posts: 141
  • Points: 661
  • Likes Received: 0
  • Reputation: +0/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
Many beginner forex traders like technical analysis because of the ease of providing entry signals. In addition, finding trading signals using price patterns and indicators has become a habit that is often done. But often with increasing experience in trading, we will realize that there are weaknesses in technical analysis.
#6 - December 11, 2021, 12:05:18 AM

  • Posts: 252
  • Points: 757
  • Likes Received: 0
  • Reputation: +0/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
For fundamentals, I think it's suitable to play long term with large capital, because of small capital I choose technical analysis to play short term, initially before memorizing make a journal to find out which points the signal is more valid, if I memorized it don't make a trading journal already fluent
#7 - December 11, 2021, 12:06:36 AM

  • Posts: 485
  • Points: 1000
  • Likes Received: 2
  • Reputation: +0/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
By having the ability to read economic data, it should be able to cover technical weaknesses. indeed that is what the masters recommend to learn both analysis, technical and fundamental.
#8 - December 11, 2021, 12:07:48 AM

  • How to overcome the weakness of technical analysis in General Forex Discussion_index
  • Posts: 906
  • Points: 92
  • Likes Received: 64
  • Reputation: +4/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
You can use many ways to anticipate the weaknesses of using technical analysis, one of which is by using the patterns in the MetaTrader chart or you can combine it with fundamental analysis but when you can't use fundamental analysis or the patterns in MetaTrader You can use the same technical analysis but use different techniques such as using an oscillator combined with a moving average.
#9 - December 11, 2021, 12:16:38 AM

  • How to overcome the weakness of technical analysis in General Forex Discussion_index
  • Posts: 200
  • Points: 191
  • Likes Received: 15
  • Reputation: +8/-2
How to overcome the weakness of technical analysis in General Forex Discussion_xx
How to overcome the weakness of technical analysis by reading global economic news will be very helpful. Forex trading is not enough to only use technical but also must be accompanied by fundamentals
#10 - December 11, 2021, 02:01:32 AM

  • How to overcome the weakness of technical analysis in General Forex Discussion_index
  • Posts: 6978
  • Points: 2
  • Likes Received: 616
  • Reputation: +23/-19
How to overcome the weakness of technical analysis in General Forex Discussion_xx
Overcoming the weakness of technical analysis can be done in various ways, one of which is using technical analysis, another is using Fibonacci or using trendlines or using support and resistance.
#11 - December 12, 2021, 02:54:56 AM

  • Posts: 102
  • Points: 612
  • Likes Received: 0
  • Reputation: +0/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
learn and understand first a trading technique and it is proven through trading whether the technique suits the trader's needs. If it doesn't match, then move on to the next technique. and also traders must systematically learn the science of trading, not just jump there and jump here.
#12 - December 16, 2021, 11:49:38 PM

  • Posts: 252
  • Points: 757
  • Likes Received: 0
  • Reputation: +0/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
all techniques will be profitable and appropriate if the trader mastered it correctly. Don't be too quick to decide it doesn't fit. but keep practicing and if there is a mistake then correct it. things like this will make traders know more about the real trading.
#13 - December 16, 2021, 11:50:20 PM

  • Posts: 485
  • Points: 1000
  • Likes Received: 2
  • Reputation: +0/-0
How to overcome the weakness of technical analysis in General Forex Discussion_xx
of course one by one various trading materials that need to be studied. but like we are hungry and then eat, it's impossible for a plate of rice to be put in the mouth. Of course you need a spoon to put rice in your mouth, spoon by spoon we eat until we don't feel like a plate is finished. do the analysis too
#14 - December 16, 2021, 11:51:44 PM

  • How to overcome the weakness of technical analysis in General Forex Discussion_index
  • Posts: 4049
  • Points: 4
  • Likes Received: 241
  • Reputation: +5/-2
How to overcome the weakness of technical analysis in General Forex Discussion_xx
When you have trouble using technical analysis of the resulting signal maybe you can add something else like you have to be able to master the use of support and resistance because it is very important to open a position in the right area.
#15 - December 16, 2021, 11:52:00 PM

Members:

0 Members and 1 Guest are viewing this topic.


* Similar Topics

xx
How to overcome the weaknesses of technical analysis

Started by zanurreload on Forex Education

215 Replies
2847 Views
Last post February 02, 2023, 02:45:58 AM
by Dyandra
xx
Which one do you prefer: fundamental analysis or technical analysis?

Started by Bahrul on General Forex Discussion

348 Replies
5423 Views
Last post February 02, 2023, 11:51:43 AM
by tradergbp
xx
Technical Analysis

Started by marsidin on Technical

16 Replies
1117 Views
Last post September 02, 2019, 01:50:58 AM
by broforex
xx
AUD/USD Forex Technical Analysis

Started by Jarratt Davis on Technical

177 Replies
6563 Views
Last post March 23, 2022, 01:54:26 PM
by Albayani