Given the assumptions listed as 1,2 and 3 here https://www.investopedia.com/terms/t/technicalanalysis.asp
What do you think about the idea that old technical patterns/trends should definitely not work any longer given that central banks and passive flows has taken an increasing place in the market?
The basic assumptions are that the market is efficient and the consequences follow trends based on that efficiency and the psychology of the actors. The central banks and passive flows changes this significantly as they have a completely different psychology and disrupt what is generally considered effective due to their different psychology as well as altering the current psychology. Shouldnt this question the relevance ofthe old trends and patterns?
Furthermore the whole market structure must have changed significantly with the introduction of passive and algos etc the "psychology" of these actors is way different then say a fundamental trader from the 70's
Anyone has some thought on this?