RE:RE:RE:RE:RE:RE:When world investor sentiment changes then TA charts don't
If enough people believe in Technical Analysis (which millions of traders do) then the process of price levels, trends and patterns has validity. It represents a portion of the trading activity of the overall market. To ignore this is a fools errand. Its kind of like people accepting US Dollars or fiat currency as real money. In reality it is only ink printed on paper backed by the faith of power of the US Govt. So in technical analysis, if a critical mass of people believe it (just like the dollar) it must be so. There is an overwhelming amount of posters on this board who believe to your lone dissenting voice. Quit living in denial on this topic and accept the fact that past prices can and do influence the thinking behavior of market participants in future operations. It matters. Parting thought... How many times has an investor in history wished they got back to even on a losing trade. Well there is a price associated with that. That is a historical price and that historical price can and will affect their decision making in the future.