I’m aware that most of technical analysis boils down to a self-fulfilling prophecy effect, but how does that justify it? For example, the price of a cross has reached a support, so a lot of people buy which causes the price to reach the resistance and then people start to close their positions. In this scenario who would be the buyer when people begin to sell? People and market makers that hope the resistance will become a support? Wouldn’t be better if they just wait untill people get impatient and start to lower their price?
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I think it’s prob more complicated than that with people/institutions who have current orders at certain price levels. And also brokers who need to hedge??