Technical analysis is useful because it observes market behaviour. Price trends, volume changes and support-resistance levels help investors judge whether buying or selling pressure is changing.
Trends need volume confirmation
A breakout with stronger volume is generally more reliable. If prices rise while volume fades, the move may be a short rebound rather than a trend reversal.
Stops and position sizing matter
Technical levels are not certain forecasts. Investors should define invalidation points and use position sizing to limit damage from a wrong call.
