UNIT 1
What TA Can and Cannot Do
Technical analysis transforms past price and volume into structured context.
Signal strengthContextNo guarantee
Trend, momentum, participation, and volatility—not certainty.
- Planning scenarios
- Standardizing observations
- Signals lag
- Patterns can be overfit
- Context changes meaning
Treating an indicator threshold as a deterministic trade command.
Evidence for standalone technical rules is mixed and sensitive to costs, selection, and regime.
60-SECOND CHEAT SHEET
Remember this.
- 1Probabilities, not prophecy
- 2Indicators use past data
- 3Regime first