TA is taking in all available info and predicting price movement
weekend dips myth, triangles myth, news, market sentiment, most probable early adopt positions etc....
Really? I was working under the impression the Wikipedia definition was more or less correct:
"In finance, technical analysis is a security analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. [...] Technical analysis is frequently contrasted with fundamental analysis, the study of economic factors that influence the way investors price financial markets.
Technical analysis holds that prices already reflect all such trends before investors are aware of them. Uncovering those trends is what technical indicators are designed to do, imperfect as they may be." (emphasis mine)
Exactly. It's the other way around.
Events affect price instantaneously. TA comes after.
By visualizing all those events in previous price fluctuations, we are able to identify them/their effect in the form of patterns.
When recognizing a triangle or cup and handle or whatever, we are simply acknowledging a common behavior pattern and using it's past performance in combination with the current market sentiment to extrapolate into the future.
