Psychology Behind Chart Patterns - Quick Top 5 Key Concepts

Psychology behind chart patterns is the core foundation of trading chart patterns.

Do you know why chart patterns fail?

Because 80% of traders consistently fail to recognize the opportunities presented by chart patterns, it is critical to understand how the other 20% use psychology behind chart patterns in order to develop the proper mindset toward trading patterns.

In the 1950s, psychologist Solomon Asch conducted a series of experiments which concluded: Whenever we are unsure how to act, we look to the group to guide our behavior. That is why most traders do not follow their time-tested strategy (which tells the truth), but instead listen to or read the opinions of others and are unable to see the truth.

The truth about trading is rather simple and perpetual.