Institutions move the market. Traders need to live with this statement.
The price pattern we see are due to institutional activity. It’s very important for a technical analyst(TA) to try to understand Institutional activity and probable market direction.
Most new traders focus on chart patterns or indicator based signals, then blame operators, smart money, institutions for their losses.
Chasing patterns is like chasing shadows. An experienced Technical Analyst will like to understand what institutions are doing by following footprints on charts, which means, understanding the reasons for creation of shadows.
Understanding chart analysis takes time. Markets are uncertain and we have not been taught to deal with uncertainties.
Dealing with probabilities is another factor which we are not taught.
Technical analysis is about hindsight analysis. We will see all setups work, patterns work, indicators work. This is good to begin with.
For a retail trader learning Technical Analyst is important as it gives a slight edge to a trader trading against Institutions. But then learning have never created professionals.
Repeatedly applying your learning to your field of choice is what makes a winner.
When trades are taken, we are dealing with uncertainty and probability. With time a trader will be able to see setups as they form.