HISTORY repeat itself in STOCK MARKET

Technical analysts believe that investors collectively repeat the behaviour of the investors that preceded them.

"Everyone wants to in on the next RELIANCE"

"If this stock ever gets to around ₹900 again, I will buy it"

"This company's Steps & Powerful Motto will revolutionize in industry, therefore this stock will SKYROCKET"

"Wow JIO….!! De Dana Dan…!! Buy Reliance again & again at every dip if u got chance"

– these are all examples of investor sentiment repeating itself. To a technician, the emotions in the market may be irrational, but they really exist. Because Investor's behaviour repeats itself so often, technicians believe that recognizable and predictable price patterns will develop on a chart definitely again & again.

Technical analysis is not limited to charting & Indicators which shows you buy or sell signals directly, but it always considers price trends, Investors Sentiments & Market Conditions. For example, many technicians monitor surveys of investor sentiment. These surveys try to understands the attitude of market participants, specifically whether they are bearish or bullish. Technicians use these surveys to determine whether a trend will continue or if a reversal could develop or if Its just Market Recovery up to 3-5%; they are most likely to anticipate a change when the surveys report extreme investor sentiment. Surveys that shows overwhelming bullishness, for example, are evidence that an uptrend may reverse, the premise being that if most investors are bullish they have already bought the market even anticipating higher prices. And because most investors are bullish and invested, one assumes that few buyers remain. This leaves more potential sellers than buyers, despite the bullish sentiment. This suggests that prices will trend down, and is an example of contrarian trading.