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Technical Analysis in Trading: How to Read Charts and What Do the Figures Mean

... enters too late, when the movement has already passed. It is also important to understand the limitations of technical analysis: it does not take into account unique events outside the charts. A sudden news release, force majeure, a statement from a regulator – all of this can move prices sharply, and no pre-drawn chart pattern will withstand. Therefore, relying only on technical analysis can be risky. Finally, beginners need time to learn how to interpret charts correctly. There is a degree of ...