Technical analysis operates on the principle that while markets are inherently unpredictable, with no one being certain about future movements, price action does not occur entirely at random.
Amid this apparent chaos, certain patterns can be identified that have a tendency to repeat.
Therefore, successful trading through isn't about being right or wrong in predictions.
Instead, it's about assessing probabilities and executing trades when the odds are in your favor.
A crucial part of this process involves predicting the likely direction of future prices and determining the optimal points for entering a position.
Equally important, however, is the assessment of the risk-to-reward ratio.
There isn't a foolproof combination of technical indicators that will reveal a hidden trading strategy.
The true key to successful trading lies in effective risk management, maintaining discipline, and controlling emotions.
While anyone can make a correct prediction occasionally, consistent profitability over time is nearly impossible without proper risk management.
