Technical analysis is a research discipline which attempts to uncover patterns and project future price movements based on patterns in charts, graphs, and market behavior.
The risk of investing based on technical analysis is that they may not consistently predict a future price movement; the current price of a security may reflect all known information. A change in the market price of a security may follow a random pattern and may not be as predictable as desired. This may occur due to analyst bias or misinterpretation, a sector analysis error, late recognition of a trend, etc.
We do not predicate investment decisions on technical analysis, but do occasionally use these techniques to manage risk and rebalance our investment portfolios.