Circumstances that cause Technical Analysis

Circumstances that cause Technical Analysis

Technical analysis is often used to generate short-term trading signals from Retail traders, They may make decisions based solely on the price charts to broad market factors to market psychology are already priced into the stock. Technical analysts do not attempt to measure a security's intrinsic value.
Few circumstances that cause technical analysis to not be useful for trading:-
SENTIMENTAL FACTOR Sentimental factor indicates rumors, It could be described as the aggregated public opinions, views, feelings, mood, or outlook that make up the market psychology by the rumors of the present market. At such point trading analysis must not be useful.

FUNDAMENTAL FACTOR Fundamental factor indicates Latest News, and New Tweets. Assuming today's top trending news is USA PM has tweet that US package has been passed, so it will impact fundamental economic also. So indirectly this will also effect on trading market.
ECONOMICAL FACTOR This factor basically include the economy of the country, for which I am trading as well as from which I am trading both will have impact on market. Likewise if value US dollar is lowering so it will effect on the currency pair also. A lower-valued currency makes a country's imports more expensive and its exports less expensive in foreign markets.
Technical analysis enables traders to gain a vision of the market and make the right move at the right time. And if this this cause occur, people will unaware about bullish and bearish and will not able to trade, so that to gain benefits.

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