You look at a cloud and see a smiling face. You look at a stain on the wall and see a dog. And the most dangerous thing is, you look at a random, chaotic candlestick chart and say Head and Shoulders! You decide to enter and lose. This is Pareidolia, the brain's instinctive tendency to try to find order and meaning in completely random, chaotic data.
šø The human brain is hardwired to gravitate toward familiarity:
The human brain is programmed to hate uncertainty. To feel safe, it automatically connects the separate candles into a familiar price pattern that it has learned.
Because you crave a trade, your subconscious starts distorting reality. You draw a Trendline cutting through candle bodies; you accept a deformed Pennant and convince yourself it is a great signal.
But in reality it is just Market Noise. There are no Whales there, only your overactive imagination.
šø Apply the 3 Second Rule to know if it is a real model or just your imagination?
The rule is when you open the chart. If within the first 3 seconds, you don't recognize the pattern clearly and instantly š THERE IS NO PATTERN.
If you have to squint, tilt your head, zoom in/out, or switch timeframes constantly to find the pattern š You are being fooled by Pareidolia.
A great setup will immediately jump out at you like an elephant in the room. You don't have to go looking for it.
š¹ Do not try to draw a dragon in the clouds. Trade what is so obvious that everyone sees it. Profit comes from patiently waiting for clarity, not from a vivid imagination.
Are you seeing a real opportunity, or are you forcing the market to fit your desire?
News is for reference, not investment advice. Please read carefully before making a decision.
