Market patterns are like magic, only without the magic wands. At the heart of these models lies real market psychology, where traders' decisions often depend not on logic, but on emotions. And yes, it resembles crowd behavior at a sale more than strict mathematical calculations.
When traders see that the price is rising or falling for a long time, they start to panic or, on the contrary, lose their heads from greed. And this is where patterns come into play — recurring models that give a chance to guess what will happen next. It's like observing your friends' behavior at a party: one starts dancing the lambada, others will surely join in, and soon you have a small dance group. The market is exactly the same — everyone follows the one who first noticed the 'new trend.'
Why does this work? Because traders are just people like us, only with different numbers on the screen. They also make mistakes, they also react to news and trends just like we do to puzzles on social media. When someone notices a pattern on the chart, there is an immediate feeling that it is a sign from above. And at that moment, as if on cue, everyone starts to act the same way, and price dynamics succumb to mass psychosis. Ultimately, a beautiful pattern appears on the chart, which you can use for forecasts.
But of course, no patterns guarantee 100% success. This is not a grandmother's recipe for perfect profit. But as a guideline, a pattern works because the people we look up to are also prone to repeat themselves. It's like going to a football game, and everyone starts shouting 'Goal!' — you would subconsciously shout too, even without understanding what happened.
So market patterns are not magic; they are just a way to understand how other people think and act, and when everyone does the same thing, the results often repeat.
