RE: Opinions please18 Mar 2025 14:59
Stockpickfree - I've always thought of technical analysis to be a graphic representation of exactly that psychology! The price action reflects the thoughts/beliefs/hopes of "the market" which is (usually) a bunch of human beings, each with their own fears, motivations and history. When the chart shows something is oversold, I imagine that fear is easing and a few people's greed glands are stirring, so the price responds to their buying. It's probably not a perfect analogy, but I always visualise the market as a literal herd, roaming the plains with seemingly random changes of direction instigated by a handful of individuals.