Well if you wanted me jealous it worked . Such a fluffy kitty 3 <| sep |> Yes you will have them all . If you question my answer , you can go into the timeout corner and think about it . <| sep |> Hey , just as a heads up , your dying light and until dawn links are switched . <| sep |> Big Firm Fake BOOBS . <| sep |> For one , you assume that there was a great amount of investors who bought at that high . Without having gone tickbytick watched order book depth , there is really no way to tell . There are indeed technical indicators that allow one to analyze precisely that . Next . For two , you assume that the fluctuation is volatility , not direction . It is absolutely plausible that there was a fundamental change in earnings prospective , both for the up as well as for the downswing . In which case there would be no reversal , selling off or not . I ' m assuming nothing . I ' m simply pointing out the very real investor psychology that accounts for why support and resistance levels are often established . Does that mean I am suggesting that is the one and only reason every single time that they occur ? No . For three , you assume that a significantly large enough amount of investors has a time horizon that makes the swing in your chart in any way significant . Perhaps YOU have that time horizon most other investors may not they may trade anything from milliseconds quant stat funds to years insurance pension companies . Either way , they would be absolutely indifferent to the price changes you plotted . It doesn ' t matter . Price action is always the product of ALL participants in that asset at any given time . What each of those participants ' time frame might be is irrelevant . Price action itself is what makes the swing in the chart significant . For five , you assume that other investors react at the same speed with the same tools as you , as in considering a chart and then making a human decision . The truth is that up to 60 % of vol is algos , and they have posted , traded , gone home and had dinner before you even opened that chart . I guess you decided to skip four ? In any case , again this is where the self reinforcing effect of TA comes in to play . Algos are programmed just as much to recognize and key off of important supportresistance zones as individual traders . Again , neither who the participants are , nor their time frame is germane to the fact that technical levels and indicators are taken into account and cause reactions . For six , it absolutely positively astounds me how many technical analysts have never fired up Matlab R to plot a few discretetime brownian trajectories . You will find all of your lovely patterns there . Trouble is , it ' s just noise . As another poster remarked , humans are TOO good at pattern matching . Stare at a random pattern long enough , and you ' ll be CONVINCED you see the rule underneath . There is none , just diffusion and drift . You are speaking with the simplicity of someone who has zero practical experience with actual trading . Patterns are maybe 10 % of the universe of technical analysis . There are countless other indicators and technical systems which go far beyond simple pattern matching . As I said in the other post , why would ANY successful investor make his money writing investment books instead of , you know , INVESTING ? Again , you are making statements from a position of ignorance . You haven ' t bothered reading the books , but if you had you would know that they are simply series of interviews with incredibly successful professional traders , hedge fund managers and investors . These are guys who have nothing to see and are not the ones writing investment books , they were simply interviewed by the author of said books . And yes , one 1 hour interview for each of them aside , they ARE too busy making money and being successful to spend time writing books or selling anything to the public .