Does Technical Analysis Work in the Saudi Stock Market?

❌ This statement is not scientifically accurate.
Technical analysis does not depend on the name of the market,
but on price behavior and trader psychology.

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✅ When Does Technical Analysis Work?

Technical analysis works in any market that has:

1. Supply and demand

2. Sufficient liquidity

3. Human psychology (fear and greed)

4. Reliable price data

📌 All of these conditions are strongly present in the Saudi stock market.

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🧠 The Scientific Basis

Technical analysis is built on three core principles:

Price reflects all available information

History tends to repeat itself

Trends continue until proven otherwise

❗ These principles apply to the Saudi market
just as they do to:

U.S. markets

European markets

Any organized financial market

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🇸🇦 Why the Saudi Market Is Suitable for Technical Analysis

High liquidity

Large number of active traders

Institutional and fund participation

Clear and tradable trends in many stocks

📌 This makes:

Support and resistance levels visible

Trends identifiable

Chart patterns repeatable

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⚠️ When Technical Analysis Becomes Less Effective

During sudden fundamental news

In low-liquidity stocks

When risk management is ignored

❌ This is not a flaw in technical analysis,
but a misuse of it.

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✅ Conclusion

✔️ Technical analysis does apply to the Saudi stock market
✔️ Success requires:

Choosing the right stock

Respecting volume

Proper risk management

Discipline and patience

📌 Technical analysis is a tool,
not a guarantee of profit.