This is a great question!
There is a saying in the finance world..
Fundamental analysis tells you what to invest in, while Technical Analysis shows you when
![Cheesy](https://bitcointalk.org/Smileys/default/cheesy.gif)
There is some truth to that!
TA is very beneficial for identifying the strong levels of buy or sell sensitivity within a particular zone for any asset.
Traders and investors are looking at these zones, and that is what makes them valid. Its the market participants all seeing the same area in a chart that makes a "support" or "resistance". When these zones get broken, the confidence in either the bulls or bears get lost and that is when we see a sudden shift in supply & demand. We call these breakouts!
So in short, TA is powerful, but it is just one part of being a profitable trader.
Understanding risk management, position-sizing, and personal/market psychology play a major role in trading success.
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