One way to climb above the chaos is through abstraction, and in a good way technical analysis is a methodology that abstracts, for it identifies varying price levels deemed important. Most technical analysis was initially with patterns like heads and shoulders, cups and handles, candle sticks. Eventually, with the advent of computers and number crunching, classical technical analysis turned into data analysis with relative strength indicators, Bollinger bands, and varying types of oscillators. Measuring price and volume action at critical price zones is what trending technical analysis is all about. It's a way to measure supply and demand. One form of a mistake would be having too many indicators or oscillators on your chart this topic has been covered in several articles from the trading type sites. Another form of mistake is looking at every turn or support resistance level that has been formed in the past and still consider it as a valid level for our future trades.
Commodities Markets
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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