> Isn't that just like astrology? I wonder how it's possible that they are allowed to publish such junk? The TA crowd will tell you that TA is a self-fulfillin

> Isn't that just like astrology? I wonder how it's possible that they are allowed to publish such junk? The TA crowd will tell you that TA is a self-fulfilling prophecy: People believe in patterns and whatnot, take profits at certain levels, buy at others, and that makes TA "true". However, if you think it through, it doesn't make any sense, because it is basically a price inefficiency. If levels and patterns were reliable indicators for predicting the future, there surely would also be a system that exploits these patterns, and thus, TA would be inefficient. Imagine a hedge fund with enough money to "create" patterns in a market. You could have perfect setups to exploit everyone else in the market. Reminder: Generating alpha / active trading is a zero-sum game. I enjoyed reading the free articles in this blog. They give you quite a bit of understanding of TA, active trading and all the fallacies around it: https://www.priceactionlab.com/Blog/article-selection/ https://www.priceactionlab.com/Blog/article-selection/