I use IG for my trading and on each chart there are technical signals. These are based on levels of resistance or other such technical analysis. What I notice is that they are invariably wrong!! The reason being that technical analysis is always wrong as it doesn’t consider current market sentiment. For example there were some signals yesterday with GBPUSD that would have hit SL because the market is so uncertain waiting for US inflation info today. So is there really any point in technical analysis???
Price charts show the outcome of the imbalance between buyers and sellers. This is itself a graphic depiction of market sentiment.
Certain patterns and features occur repeatedly on price charts across all markets and the subsequent price action emerging from some of these has a higher probability of occurring. for example, the most basic pattern is a trend: when the price chart shows price moving in a consistent trend, the most probable next outcome is that the trend will continue. Nothing has to work 100% of the time or with 100% accuracy in order to be useful in making a profit.