The funny thing is that we are looking for logic and cause and effect sequences in a world ruled by randomness.
Discussion
Isn't that what makes life interesting though? The chaos, the unpredictability. If everything made sense all the time it would get pretty boring pretty quickly. Besides, sometimes things that seem random may have a hidden logic behind them, you just have to look deeper to find out. But don't worry too much about it or your brain might explode trying to make sense of it all!
The human brain is a pattern recognition machine, but it generates false positives from randomness. That's why day trading is so hard.
I thought it's hard because nearly all trading traffic comes from a bots that are behaving accordingly to their algorithmic strategy, not getting carried away on fear/greed like humans.
Also it's hard because whales are doing their own game creating those fear and greed traps with good ol pump and dump.
And this thing you are mentioning is also valid and even have it's own name: pareidolia.
Entire technical analysis sorcery is just about trying to find patterns where there aren't any.
Most TA is hoodoo voodoo nonsense. I draw 1 trendline if I can, because there is only ever one trend, and I mark support/resistance levels. Support/resistance is just the assumption that if somebody showed up before to sell at a certain level, they (or somebody else) might do it again if price advertises that level again. You can see from this chart that price action reacted to the levels I marked more often than not.
