It would not be fair if we didn’t mention, discuss, and address some of the criticisms of technical analysis. These usually stem from economists and fundamental analysts in general. So, before we draw any conclusions, let’s hear both sides.
There are three major criticisms, namely:

  • The self-fulfilling prophecy
  • Can the past be used to predict the future and
  • Random walk theory

The self-fulfilling prophecy in one of the most known criticisms of technical analysis. In a nutshell, what they really say is that technical analysis works!
Well, let me explain.
They claim that all technical analysts identify the same chart patterns and enter the market at the same time.

Perhaps we all know and are capable of identifying most of the chart patterns, but what about the timeframe. Do we also use the same timeframe? I don’t think so.
Different traders use different timeframes, and this is a fact.

Some use the 5-minute, others the 1-hour, and perhaps others the daily timeframe, just to name a few.
Once again, different timeframes display different directions, and it goes without saying different chart patterns.
One timeframe may be pointing upwards, another downwards and another is ranging.
The choice is up to you!