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Technical analysis criticism

Critics of technical analysis usually ask two questions:

(1) How technical analysis can be used when all traders are following the same rules?

(2) Can we use at all historical data to predict future price movements?

Regarding the first question, we should point out it is true that all analysts use the same theoretical basis. However, how each of them will react, it depends from person to person. Some will enter the market earlier, while others that don't like to risk will enter later. Some trade aggressively, but others do not. Some like to open long positions, but others like short positions. On the other hand there are doubts among analysts if certain pattern is triangle or wedge, etc. So the technical analysis is subjective.

The issue of using historical data is often raised. But it is interesting that this issue is raised at all, when so many other methods are based on historical data, from weather forecasting to mathematical induction. What data, except historical, could be used at all?


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