Why technical analysis is important?
Trading without the right knowledge and use of technical analysis is like tossing a coin. There is an equal probability of profit and loss. This is in particular very dangerous while dealing in the trading world. One must always focus towards the profit, even if with low margins at times. Technical knowledge is the key that leads a trader towards the profit line with minimum effort and time.
The importance of technical analysis lies in the fact that it helps traders identify the proper entry and exit points, I.e. it helps to identify the right time to invest in the stocks and again the right time to withdraw the money with profits. Identifying this right time can actually make a lot of differ4enceinthe trading world.
The other importance of technical analysis lies in the fact that it helps the trader to understand the market conditions in a simple manner with the help of basic charts and patterns. Technical analysis thereby makes it very simple and time efficient for a trader. Thus the correct technical analysis is one of the most important aspects of a trader’s life.