As a trader, I often encounter the criticism that technical analysis is ineffective because charts only display past data and cannot predict the future. I acknowledge that no one can predict market movements with absolute certainty, and it is true that charts reflect historical information. However, I believe that analyzing past price action provides valuable insights that inform our trading decisions.

By studying historical patterns and behaviors, we can identify areas where the probabilities may be in our favor. For instance, if a stock consistently bounces off a particular support level, it is logical to consider that level as a potential entry point. While this does not guarantee future performance, it offers a rational basis for our strategies.

In this video, I address the common complaint that charts merely show what has already happened and therefore hold no value. I explain how past data can be instrumental in identifying likely scenarios and why utilizing historical information is a practical approach in trading. My aim is to equip fellow traders with an understanding of how to effectively use technical analysis to gain an edge in the markets.