What you describe is similar to what beagle3 described. A world where patterns exist and slowly fade out.
But that is not the reality of the stock market. See my reply to beagle3 for two ways to counter this view.
Specifically to your point that patterns exist but do not reverse: Then one could make money by just trading against the pattern. If no "punishment" comes down the line in form of a reversed pattern, there would be no risk.
The simplest example would be a hypothetical irrational bull market euphoria. More and more new investors come in under the assumption "OMG! Every day the prices are higher than yesterday!". If that pattern would not reverse, there could not be an "irrational euphoria" because prices would either rise forever or stay on the highest level. So it would be only rational to join the choir. Much to gain, nothing to lose.
But that is not the reality of the stock market. See my reply to beagle3 for two ways to counter this view.
Specifically to your point that patterns exist but do not reverse: Then one could make money by just trading against the pattern. If no "punishment" comes down the line in form of a reversed pattern, there would be no risk.
The simplest example would be a hypothetical irrational bull market euphoria. More and more new investors come in under the assumption "OMG! Every day the prices are higher than yesterday!". If that pattern would not reverse, there could not be an "irrational euphoria" because prices would either rise forever or stay on the highest level. So it would be only rational to join the choir. Much to gain, nothing to lose.