The Illusion of Technical Analysis: Why Fear and Greed Control the Market More Than Indicators?
In the world of trading, many traders believe that technical analysis alone can reveal market direction, as if candlesticks and indicators possess magical powers. But the bitter truth that many overlook is: the market does not obey analysis, but rather the psychology of humans.
Behind every market movement are emotions:
Fear drives the trader to sell at the bottom,
Greed makes them buy at the top,
Revenge makes them gamble their money after a loss,
And boredom makes them enter trades without justification.
As for technical analysis, it is merely a tool that helps with organization—not a magic wand. Because the market does not move based solely on a pattern or an indicator, but is influenced by massive external factors such as:
Central bank decisions,
Geopolitical news,
Whale movements,
Social media trends.
The strongest analyst in the market is the one who understands its psychology, not the one who fills the chart with indicators. Your commitment to the plan and your calm during volatility are far more important than any pattern on the chart.
