One reason I respect Serenity is that he argues logically. (Remember not too long ago he made a post about TA?) I have similar issues with TA It is astrology when people claiming pattern matching is causal explanation. TA is the idea that charts "may" reflect supply, demand, positioning, and crowd psychology That idea exists in classic TA frameworks: Murphy, Dow Theory, Wyckoff, Edwards & Magee. They all treat price action as a way to observe market behavior Behavioral finance also supports the broader idea that markets are not perfectly rational. Kahneman & Tversky showed people behave differently under gains and losses. Barberis, Shleifer & Vishny model how investor sentiment can create underreaction and overreaction But this is where the leap happens Behavioral finance does not prove that a Fibonacci level, a lower low, or a support line reveals the actual psychological mechanism behind a move At best, TA observes a price pattern!!! It does not prove why that pattern happened. Especially with $SIVE, saying "I called the move from 73 to 49" skips the actual event in the middle: dilution news (INSIDE TRADING MUCH???) Unless the chart predicted the timing, size, price, and terms of the dilution, this is not clean TA validation It is correlation being dressed up as causation Even Lo, Mamaysky & Wang, one of the more serious academic attempts to test chart patterns, begin from the problem that traditional chart reading is highly subjective and often "in the eyes of the beholder" So yes, psychology matters in markets But "psychology matters" does not mean every line drawn on a chart has causal meaning. Read the literature yourself: Technical Analysis: Lo, Mamaysky & Wang — Foundations of Technical Analysis Behavioral Finance: Kahneman & Tversky — Prospect Theory Barberis, Shleifer & Vishny — A Model of Investor Sentiment Data-snooping critique: Sullivan, Timmermann & White — Data-Snooping, Technical Trading Rule Performance, and the Bootstrap One field studies chart patterns. The other studies investor psychology. They are not the same thing!!!