Today there is a lot of focus on Technical Analysis of Stocks and markets . What most people lay in the concept of Technical Analysis is the study of price and possible trading volume over a period of time, and from this study be able to draw some conclusion on the likelihood of future price movements in any direction.

To say it out front, I do not believe in being able to beat the market on a consistent basis

The exception is that I believe technical analysis can be useful on some specific trading strategies such as arbitrage trading. But most people do not do arbitrage trading, but use Technical Analysis to trade one stock.

Possible scenarios for trading could be to try to buy stocks on the bottom, to try to reduce the risk by getting the stock at the lowest price for a time period. Other scenarios could be to try to find a stock that is trending up.

The problem with Technical Analysis is that is very subjective. In the way that it is possible to see what you want to see. In the two cases above, one person may argue that the stock must be at the bottom and is very “oversold” and the other person may see it as trending downwards. The result is that two persons may have complete opposite view of the situation, and do opposite trades.