Technical analysis (TA) is often criticized as “stock market astrology” due to its reliance on patterns and price movements, which some view as speculative and subjective. Critics argue that interpreting charts can lead to confirmation bias, similar to reading horoscopes.
However, TA works because markets reflect human behavior—driven by emotions like fear and greed—which creates patterns and trends. Tools like moving averages and support levels quantify this behavior, making TA effective for identifying opportunities, especially when used by traders and institutions in real-time decisions.
While not foolproof, TA complements other strategies and helps navigate the psychological nature of markets. What’s your take—does TA work for you, or is it just modern-day astrology?
@trust_level_1
1 Like
-
TA is similar to data analysis methods in other fields. For example, using past data, we create a math model to describe the system that can generate a certain output given the data and then use that model to predict the future behaviour of that system with future incoming market data.
-
TA can be coded and automated and helps with considerable ease of trading.
-
TA keeps things simple and focused by using data that matters - price, volume etc rather than all the macro, and micro fundamentals that happen around the globe which can be confusing to most people.
Besides all the money that I made trading is using TA alone. So TA works.
This is a topic in itself 
Some food for thought
-
The Lahiri Ayanamsa used by most astrologers in India is not precise. This causes huge variations in the chart casting, especially the divisional charts, the timing of events etc. Even most other variations of ayanamsa in vogue are not astronomically correct over time.
-
Most astrologers use just 1 or almost 2 charts which mathematically means they are referring to not 1 individual but a set of individuals 