What are the pro / cons of technical analysis?

[Dinesh]

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Pros-

Helps follow the market which is largely controlled by strong hands. When done well, reduces risk of trading. It is a short term and easy doing any individual who understand the market.

Cons-

Not the best approach when compared to fundamental analysis whereas fundamental analysis gives you a accurate price variation of a stock of a company.

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[Issa Fathima Jasmine]

Pro – it follows the market trend

Cons – doesn’t give adequate details like fundamental analysis . Sometime predictions may go wrong.

 

[Anitha Ramesh]

The technical analysis requires less information such as price and volume.It follows the market trend.

The disadvantage is that it works for short duration of time.

[Rajarathinam]

Pros:

We can do trade with help of “price and volume” data alone by following the market through technical analysis. As a retail trader we can only do technical analysis as we don’t have access to inside information of the company which we opt to trade.

Cons:

As we don’t have access to inside information of the company (which we can get through fundamental analysis) our technical analysis sometime may have chance to go wrong.

[Dipakk Mehta]

It is possible to do technical analysis by everyone unlike fundamental which can only be done by stong hands.

Technical analysis helps us follow market trend and derive risk reward ratio quite easily.

It is not as effective as fundamental as sometimes it may go wrong.

[Author]

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