Limitation of Technical Analysis:
1. Most technical analysts are not able to offer convincing explanations for the tools employed by them.
2. By the time technical analyst signals an uptrend and downtrend it may have already taken place.
3. The claims made be based on different chart patterns and untested claims.
4. There are great deals of confusion in the identification of configuration as well as trend lines and channels on the chart which can be is interpreted differently.
5. As more and more people employ the technical analysis the value of such analysis tends to decline.
6. Random walk hypothesis theory cast its shadow over the usefulness of technical analysis.
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