“Technical analysis is a windsock, not a crystal ball.”
— Carl Swenlin
A windsock is a device used to determine the current wind direction and relative intensity. A crystal ball is a mere prop used to predict the future.
A windsock’s general purpose is to give the pilot a quick reference as to where the wind is coming from and the approximate wind speed. Before accelerating for takeoff, you glance at the windsock for information so you can give the necessary rudder inputs while the plane is rolling down the runway.
That’s how we apply technical analysis to trading.