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Advantages and Disadvantages of Technical Analysis

Brian Connor


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Hello, thanks for asking! 

The advantages of technical analysis are that market news reflects the stock prices, it is easier to keep track of the trend of an asset using technical analysis. This type of analysis used previous experiences and gathered knowledge to signal a trade opportunity, and when to make a timely exit in order to maximize your profits.
Sometimes technical analysis can bring confusion, by sending out mixed signals, whether to buy or sell, it also isn’t 100% accurate, and doesn’t guarantee profits. Another disadvantage is that it carries a biased opinion, and because of previous misconceptions and bad results, it can oversee good opportunities.

The best combination is to combine fundamental and technical analysis, which will guarantee the best results.

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