Developer, Bitcoiner, Entrepreneur, Author of "The Truth About Bitcoin"

Sylvain Saurel

Basically, you might feel that technical analysis is useless.

After all, you have a person who will draw support lines, resistance lines, trend lines, etc.

Then afterwards, this person will act according to the behavior of the price of the asset in relation to these lines.

If the price of the asset breaks this support, then it will go even lower, and I will strengthen at this price level. If the price of the asset rebounds on this support, I will do this...

This does not go well with investing relative to the fundamental value of the underlying asset. After all, you invested in a company on the stock market because the growth prospects are significant and the company has an unfair advantage over its competitors.

So why should you care about technical analysis?

Well, because millions of other people care!

Technical analysis itself might be useless, but since millions of people will be acting on these trend lines that you have carefully drawn, they suddenly become useful and can allow you to earn more money. short-term money.

Technical analysis is primarily used by those who want to do day trading or trading over short periods. If you are aiming for the long term, this is not something to worry about.

So you can think of technical analysis as a kind of self-fulfilling prophecy!

Basically, you might feel that technical analysis is useless.

After all, you have a person who will draw support lines, resistance lines, trend lines, etc.

Then afterwards, this person will act according to the behavior of the price of the asset in relation to these lines.

If the price of the asset breaks this support, then it will go even lower, and I will strengthen at this price level. If the price of the asset rebounds on this support, I will do this...

This does not go well with investing relative to the fundamental value of the underlying asset. After all, you invested in a company on the stock market because the growth prospects are significant and the company has an unfair advantage over its competitors.

So why should you care about technical analysis?

Well, because millions of other people care!

Technical analysis itself might be useless, but since millions of people will be acting on these trend lines that you have carefully drawn, they suddenly become useful and can allow you to earn more money. short-term money.

Technical analysis is primarily used by those who want to do day trading or trading over short periods. If you are aiming for the long term, this is not something to worry about.

So you can think of technical analysis as a kind of self-fulfilling prophecy!

Sylvain Saurel

Is Technical Analysis Useless?