Many a time, Technical Analysis (TA) is very accurate and powerful because of the element called self-fufilling prophecy.

If certain aspects of the technical analysis are obvious and they are picked up by many traders, the so-called “prediction” will materialize.

For example, if a stock is obviously trending upwards, many trend traders will likely go long and buy up the stock. This buying pressure will therefore reinforce the uptrend further.

Another example, if a stock is heading down towards a strong support and many traders view that support as buying opportunity, the likelihood of it rebounding from the support is extremely high, thus reinforcing the strength of the support.