"What technical analysis is good for:Short-term trading: It...

"What technical analysis is good for:

• Short-term trading: It helps spot momentum, trends, and entry/exit points—especially for traders using algorithms or high-frequency systems.

• Market psychology: Price patterns can reflect herd behavior (e.g., fear, greed, panic).

• Liquidity zones: Support/resistance levels often align with where real money is positioned.

Where it becomes hocus-pocus:

• Predicting the future: Drawing trendlines or naming patterns (like “cup-and-handle”) doesn't guarantee anything.

• Long-term investing: Fundamentals usually matter more—earnings, cash flow, assets, management.

• Self-fulfilling prophecy: Sometimes it only “works” because many people believe in it and act on it.

Bottom line:

• It’s a tool, not a truth.
  Used smartly, it can help with timing—but if you're using it to predict outcomes without understanding fundamentals, it's closer to astrology than analysis."