Facts
The key principle to understand and to see the Markets as they are is to realize that all the market participants, active and passive, are watching the same information presented in the same way.
Other people are watching
The same Time-Frames
While different people prefer different timelines there are a bunch of pre-defined ones in the apps and on charting sites.
There is a popular meme about the factor of 7 between time-frames.
1m
Newfags are watching (and trading!) every single blip.
15m
This is a default time-frame in the common apps.
1h
This one considered to be reasonable one among boomers.
1D
The timeframe for serious institutional investors (always too late).
1W
To see how you could have been a millionaire.
The same Candle-Stick Charts
All chars are of the same kind, evenly spaced on the time axis.
The same round numbers (Prices)
The big round numbers are natural price targets and key supports or resistances, (depending on what market is it) especially on the edges.
Even if one know nothing about TA one understands the big round numbers.
The same Patterns
People and bots are looking for a common pattern to emerge and react as soon as they recognize one or another.
Other people would see the same pattern on the same time-frame.
A just emergent pattern defines and dominates the current Market short term.
People first react to the new pattern and then begin to doubt it and trade against it.
Double top
Lower High
Head and shoulders
Higher Low
Double bottom
The same memes
100k EOM
Will never be below xxx again
A Dead cat bounce
A return to normal
The bottom is in
The same Volume bars
- The There Is No Volume meme
The same Meme Lines
Other people draw meme-lines between points to confirm their wishful thinking and convince themselves that they are right.
Meme-lines become real because other people draw essentially the same lines on the same charts. They are socially literally socially constructed.
A Support
Every support is what majority of other people identify as a support.
A key support is broken meme is when other people recognize it.
A Resistance
A major resistance is broken meme is the same.