Honestly it never seizes to amaze me when noob traders jump to conclusion that T. A. is useless in crypto-trading, perhaps they had better wake up from their illusions. Here's how it is going:
T.A. is never useless and whoever said it, is in fact a noob! but at the same time it is not that useful either. specially for altcoins.
you see the technical analysis can never factor in the manipulation that runs the altcoin market, it can not factor in the unpredictable stuff that happens in the world. like for example when Bitfinex was hacked last year you couldn't predict that with TA. or you couldn't predict anything when August 1st was threatening bitcoin.
i am not an expert in TA by any means but i have found that it is good as long as you use it as an outline to only
get a better idea of what is most possibleIt is never possible to factor in every event in any trading decision, be it in forex, stocks, etc, because the factors are innumerable and some events like interest rates, Non Farm Payroll are however weightier than many others and they do shake the market whenever they're in the air. Same goes for the hacking of an exchange, it sends shivers down the crypto-world.
At any rate T.A. are tools to assist a trader in making trading decisions, they're like your navigational aids, problems only start when a trader tries to turn them into some crystal balls.
In the first two images on Manaco, a Head N Shoulders pattern is building up in the daily time frame, that means, it is going to take some days to fully develop and in between a lot of things are possible.
After I had posted those images, a reverse Head-n-Shoulders pattern commenced in the lower time frames, which would ultimate supply the bullish move we are waiting for:
Below is original pattern formation taking shape nicely, price is expected to touch as least the red line before falling hard:
