Why technical analysis is not reliable

[shinratensei_]

TAs are not usually applicable in some of the alts market because the devs have other plans which is totally against any of these market indicators. A very good example is when the team decided to play the pump and dump scheme. I don't think any TA can be deployed on this as you will only get the hint if they will do this if you are following their social media platforms.

TA only works when altcoin finally find the right price for its value, then moving forward the short term candle can effectively be predicted using technical analysis, although people may not believe drawing line could do something but it does, because many people also follow the same method to determine future, the market which consists of many like minded trader will also follow TA.

like this chart for example

you can see that within 1m chart candle there are so many ups and downs, those ups and downs most likely formed because traders are creating TA so they decide at which point they gonna dump and at which point they gonna pump.
this works like self fulfilling propechy, but it's only my thesis, but overall TA does sometime works but of course not 100% accurate.

[AYOBA]

technical analysis is a useful tool for traders, but we have to consider it's limitations. Technical analysis is basically based on assumption about the past market statistics and data, without putting into consideration other external factors . So traders should not 100 percent rely on technical analysis, they should use it together with other methods of analysis.

The reason why people's recommended the technical analysis to some newbies that introduce themselves new to the trading, because trading have high risks and without the fundamentals and techniques they can never achieve what they want in trading. Because the those technical analysis are the best key for every trading, we all know that add it to another method of analysis is good ideal, but we should put the technical analysis consideration than others methods.

3.Technical analysis will not provide the full details of the market,  that is putting economic and global events into consideration,

But at least technical analysis provides more information about the trading even in terms of control the market strategies, without the technical analysis knowledge there expectations about the market will go wrong.

[dunfida]

Even that technical analysis can be used in most of markets, it is often failed to provide a correct prediction for the market next direction. This combination of indicators and patterns will not guarantee you anything more than a market historical analysis and old behaviors of traders.
It is only a tool to help traders identifying resistance or support levels, however, it won’t tell you when it is time for these levels to be reached, nor the future price direction.

Personally, technical analysis was a great tool for me as a beginner, a very helpful resource to understand the market. However, it is more unreliable with some markets, for instance it work better with Forex market than crypto market.

Sometimes it is important to take a step back and take the time to think about what technical analysis is about, and technical analysis is nothing more but a tool that allows us to understand more clearly the past so we can make better predictions about what it may happen on the future, so once you understand this, it is clear that TA cannot be a precise tool as the circumstances surrounding the market are always changing, still I consider it a useful tool and one that can be very helpful once we understand its limitations.

TAs are not usually applicable in some of the alts market because the devs have other plans which is totally against any of these market indicators. A very good example is when the team decided to play the pump and dump scheme. I don't think any TA can be deployed on this as you will only get the hint if they will do this if you are following their social media platforms.

The moment or situation on which technical analysis doesn't work;

1. Sudden developer plans
2. Community hype or simply fundamentals
3. First candle movement or simply it is still new.
4. Market sideways or consolidation

These are the times that you would be boggling your mind when you do make use of technical analysis.
You can't be sure on where it would be going and this is why you would really be that skeptical on making use of these tools but ofcourse
It would really be just that depending on how you would make yourself handle such situation.

No matter how bad the market is, you should really that still make use of indicators because it would really be still that relevant.
It's up to you on how you would be taking actions.

[Silberman]

Sometimes it is important to take a step back and take the time to think about what technical analysis is about, and technical analysis is nothing more but a tool that allows us to understand more clearly the past so we can make better predictions about what it may happen on the future, so once you understand this, it is clear that TA cannot be a precise tool as the circumstances surrounding the market are always changing, still I consider it a useful tool and one that can be very helpful once we understand its limitations.

TAs are not usually applicable in some of the alts market because the devs have other plans which is totally against any of these market indicators. A very good example is when the team decided to play the pump and dump scheme. I don't think any TA can be deployed on this as you will only get the hint if they will do this if you are following their social media platforms. Or worse, the team already abandoned the project before you realized you are holding their worthless coins/tokens. As we put it this way, most alt markets don't follow any TA indicators but you will find out real quick that common sense plays an important role not to get wrecked with your funds.

This should not surprise anyone at all, anyone that is serious about using TA as a tool to obtain profits with should know this, since this is one of the first things actual traders warn about, TA can only work on a market that has a lot of volume, and this is because in this way you can avoid whales manipulating the movements of the market in an extreme manner and the effect insider traders may have, so it is obvious that most altcoins are unfit for the application of TA, and anyone interested in profiting from those coins must use other methods.

[irhact]

This should not surprise anyone at all, anyone that is serious about using TA as a tool to obtain profits with should know this, since this is one of the first things actual traders warn about, TA can only work on a market that has a lot of volume, and this is because in this way you can avoid whales manipulating the movements of the market in an extreme manner and the effect insider traders may have, so it is obvious that most altcoins are unfit for the application of TA, and anyone interested in profiting from those coins must use other methods.

Using Technical analysis you can get an idea of how the market is going to move then you make your decision, it might not be exactly what will happen to the market but you can get a heads up to leave the market or continue trading. There are many altcoins that you can use technical analysis on, the altcoins has to be old ones and not the new ones that were just listed or you will be getting a wrong interpretation. A new token that has no history to look at, TA won't work but if it has 6 to 12 months of trading activity, it can be interpreted with technical analysis and you will get a good trade.