What do you do if your technical analysis predictions are off the mark?

There are 2 types of data to review: 1) the configuration and inputs of your technical indicators such as Moving Averages, RSI, etc... For instance the upper and lower band of the Relative Strength Index "RSI" are usually set to 70 and 30 respecitvely. For Bitcoin, this is too tight considering the price volatility of this asset class, so you might want to widen them to 80 and 20. Same for the other indicators, the SMA with 14 days period is not so significant when you are trying to identify longer term patterns or trends. you might want to change it to 50 or 100 days. You can also overlay several moving averages with different configurations. 2) review your Support and Resistance levels and adjust them if needed.

If technical analysis predictions are off the mark, it's essential to reassess the methodology. 1.Analyze the data inputs and review the assumptions made during the analysis process. 2.Identify any external factors or market dynamics that may have influenced the deviation from expectations. 3.Adjust the analysis technique or incorporate additional indicators for a more comprehensive view. 4.Seek feedback from peers or experts to gain insights and refine future predictions. 5.Adapting and learning from the inaccuracies enhances analytical skills and improves future decision-making processes.

This is a very important part. Assuming the data and its configuration are somehow correct or reflective of the current state of the market, you have to assess your strategy. Back test your strategy on a regular basis and tweak when needed.

In my opinion, this is the most important part for any and every trader. Quantitative algos do work and can generate profits, but still the market is driven by human traders and their decisions. Emotional discipline is a must and requires practice. A lot of years of practice (hopefully not too much for some of us). The main emotions you must learn to deal with are Fear and Greed, and when combined together Fear or Missing Out (FOMO). I am not saying to supress your emotions, what I am saying is for those emotions not to influence your rational trading decisions that are based on technical data.

If Technical Analysis(TA) predictions are off the mark then- R: Review the TA strategy(Stgy), scrutinize for errors, examine the data, time-frame used E: Emotion check: Check for emotional & cognitive bias V: Validate the finding, seek feedback, have open mind for accepting mistakes, do networking for sharing & learning new stgy I: Integrate Fundamental Analysis, Market Dynamics in the analysis properly; use new tools, softwares S: Strategise: Developed new stgy on revised analysis, risk management, back test if needed I: Implement & Iterate the planned stgy with discipline, patience & emotions, not being emotional T: Track & monitor the stgy for performance, accuracy of prediction, entry & exit points, new information & adjust accordingly