Question 1

What is confirmation bias in chart reading?

Accepted Answer

Confirmation bias is the habit of noticing the parts of a chart that agree with what you already believe and skipping the parts that do not. It makes a chart feel like proof when it is really just the examples you let yourself see.

Question 2

Why do charts look obvious in hindsight?

Accepted Answer

In hindsight you already know how it turned out, so the signal that worked stands out and the identical signals that failed fade into the background. Looking at the hard right edge, where the future is still unknown, is far harder than looking at the middle.

Question 3

How do I read a chart more honestly?

Accepted Answer

Note the timeframe before you read into a move, look for the times a pattern failed instead of only the times it worked, and actively try to argue the opposite case. If you cannot find any evidence against your idea, you probably have not looked.

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