I know this question might sound stupid but, i really don’t get why Technical Analysis is needed. I mean yes it will guide you on your trading on how the rate might go. But for me, that’s just it, “it might”. It’s just a possibility, a guide. So for me, why do some effort making this Technical Analysis when everybody knows that it’s a fact that know one will ever know which the rate will go?
I hope i didn’t offend anyone but this is just a question in my head that i can’t get an answer.
In my view, and shared by others here as i’ts been noted in the past on other threads, technical analysis is more likely to be used with short term analysis, meaning fundamental analysis drives the market long term. Technical analysis helps us to see, even though it’s not always correct, which way the market may move in the short term to immediate future providing all fundamental news remains constant.
You remember when you were at school in your science lessons, and the teacher would say "what would happen if I change one variable whilst holding all other variables constant - which means you’re only ever changing one thing and looking at the outcome. This is the same with technical analysis, your looking at the charts and saying “this is likely to occur in the near future providing no news comes out and changes the markets over all directional bias”
So to answer your question, technical analysis can be very useful to a trader providing they use it correctly. Unfortunately technical analysis is a huge area of study with no real fixed parameters (you can even create your own methods if you really want to). You don’t have to know everything about technical analysis, and most people focus on a select area that interests them the most and start applying this to their market of choice.
Sometimes when a person doesn’t fully understand the benefits of something they may well question why it’s used in the first instance