Presupposition and Support/Resistance

Once my close friend told me that intelligence is the skill to classify. I still believe so.

In NLP, the equivalent of his idea is the pattern recognition.


5 sensory systems => Pattern recognition => Formation of language


If the initial information coming from your 5 sensory systems are to be pure, then one can construct any pattern virtually with the limitation of your presuppositions.

Basically, you need to attach any kind of meaning to your pattern; otherwise, a bit of neutral information can never be classified. You have a supposed label when you intend to see a pattern in an seemingly chaotic information. And thus people have difference patterns existing in their own minds. It has nothing to do with right or wrong. It is just a difference in perception among people.


As a trader, many people are sensitive to the support/resistance level in the past charts. I think this psychology is exactly the same as the pattern recognition in NLP. You believe that to be true until you find it wrong or ineffective. As long as it serves you its purpose or stands its validity, you don't need to care.


So once the support/resistance is broken, you need to find your own new points, like those who have just lost the validity of their presuppositions need to find something else...