This study aims to analyze the effect of technical analysis
understanding on investment success among retail investors. The
results show that the understanding of technical analysis has a
positive and significant effect on investment success, with a regression
coefficient of 0.724 and a significance level of 0.001 (<0.05). In
addition, the coefficient of determination (R Square) of 0.468
indicates that technical analysis understanding contributes 46.8% to
investment success. These findings support the castle-in-the-air theory,
which explains that stock price movements are influenced by market
psychology and investor sentiment, making technical analysis relevant
in helping investors interpret market conditions and make investment
decisions. Therefore, it can be concluded that the higher the level of
an investor’s understanding of technical analysis, the higher the level
of investment success.
