Man, I've been arguing with someone who says it doesnt work. His arguments and my answers: He:You can't predict the future based on historical data Me: It's not about predicting the future, but rather having the odds on your side, by making more informed decisions. He: there have been thorough research that show that tecnical trading is useless Me: well, these researchers are certainly not real traders with lots experience. Furthermore, no single indicator can generate profits by their own, since there is no such thing as a holy grail. And using tecnical indicator is not just about applying them and then try to see price correlations, but rather, a big part is using the right combination of indicators, but most importantly, trying to interpret the results/signals from tecnical indicators in the right way, and the skill to judge them correctly usually takes years of experience. Therefore, it doesnt surprise me if amateurish scholars havent found statistical evidence that proves that tecnical trading work. Being a trader is about creating an overview, and get a feeling for the situation most of the time, and in the process of getting an overview of the market, these tecnical indicators are usually only a part of the tools a trader use. Lots of tecnical indicators also work because they become self fulfilling prophesis. If lots of people believe in pivot points, lots of people will place their stops at 60(if that is the pivot point), and therefore stops will be triggered, and prices decrease, not being able to penetrate the support at 60. He: In that case, Tecnical analysis wouldn't work in the beginning. Me: well Tecnical analysis has become popular because people want something to look for, which give them confidence to do something, whether or not Tecnical analysis work or not. This guy drives me crazy.