Common Mistakes in Technical Analysis (And How to Avoid Them) 🧠📉
Technical analysis is a powerful tool, but many traders fall into the same mistakes, over and over again... Here are the most common ones:
⸻
1. Ignoring the larger time frame ⏳
If you are analyzing on a 15-minute chart without looking at the daily trend, you are trading in the dark.
Solution: Start by analyzing the larger frame, then drop down to the smaller frame to accurately identify entry points.
⸻
2. Relying completely on just one indicator 🔍
Using only the RSI or MACD without considering the price itself = an incomplete decision.
Solution: Use a combination of price + indicators + price action.
⸻
3. Drawing trends and support and resistance lines randomly 📏
An overly steep trend or support drawn between candles will mislead you.
Solution: Focus on clear highs and lows, and ensure that the lines touch more than one point.
⸻
4. Forgetting that “false breakouts” exist 🤥
Not every breakout means an entry opportunity. Sometimes it’s just a trap.
Solution: Wait for a full close above or below the line after the breakout + confirmation from volume or the next candle.
⸻
5. Not documenting your analysis results 🗂️
You analyze and analyze... but you don't know if your analysis is successful or not.
Solution: Keep a record of your previous analyses and learn from mistakes to evolve over time.
⸻
Do you want a PDF file with a ready-made list of technical analysis mistakes + examples from the real market?
Type the word “Analysis” and I will send it to you for free ✉