9 Common Mistakes in Technical Analysis

Master the charts by avoiding these errors traders often overlook.

1:Treating TA as a Crystal Ball

TA shows probabilities, not predictions. It’s not magic—just analysis.

Don’t see what you want to see. Wait for confirmation, not imagination.

2:Forcing Patterns or Bias

Support/resistance can shift quickly. Adapt to strong trends.

3:Ignoring Trend Dynamics

MAs shine in trending markets—not in chop. Know when to use them.

4:Misusing Moving Averages

Overbought ≠ reversal. In parabolic trends, RSI stays high for long.

5:TBlind Trust in RSI

Scalping with daily charts? Swinging with 1-min candles? Match timeframe to your trading style.

6:Wrong Timeframe Use

Your setup isn’t law. Market structure evolves—so should you.

7:Being Too Rigid

• Don’t miss breakouts—they’re 90% of TA. • Stop predicting—follow the trend.

8 & 9 :Breakouts & Trends

Technical analysis is a tool—not a truth. Avoid these mistakes, and read the market—not your mind.