What are the pro / cons of technical analysis?

[Dr. Karthik Jayachandran]

Pros:

1.Traded Price and Volume are the transparent inputs needed for the analysis

2.Suitable for weaker hands

3.It focuses on market

Cons:

1.Company performance cant be studied

2. Forecasting of the stock price can`t be done

3. All technical indicators reflects what has already happened in the market. Thus technical analysis is reactive not truly predictive of what will happen.

http://besttradingplatformfordaytraders.blogspot.in/2010/12/disadvantages-of-technical-analysis-for.html

[Anitha Xavier]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Pros:</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>1.Traded Price and Volume are the transparent inputs needed for the analysis</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>2.Suitable for weaker hands</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>3.It focuses on market</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Cons:</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>1.Company performance cant be studied</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>2. Forecasting of the stock price can`t be done</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>3. All technical indicators reflects what has already happened in the market.</p>

[sanjaivasan]

Pros:
* Input data is market price and traded volume.
* Input data is easily available and accessible to everyone.

Cons:
* It does not consider company’s fundamental aspects.
* As it does not consider fundamental aspects of the company, it is not 100% reliable one.

[Ranjani Arumugam]

Pros =1.  Easy access as price and volume only things required.

2. Price / volumes can be clearly seen on charts.

Cons= 1. Subject to market sentiment.

2. As you make a judgement by different indicators, interpretation can be different for different people.

3. Good for short term predictions not for long term predictions, as you dont look at the fundamentals of a company , so can be risky in longterm.

[Angelin Monica]

Pros:
input data is price and volume which can be seen easily

Cons:

as we are just following the market we cannot say that it could be right always

[Author]

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