Exactly. 'Conventional wisdom' says 'If chart does x, price increases' and enough people believe it, so, when the chart does x everyone believes it will go up so they buy so the price goes up. Exactly the same concept in reverse. This is the primary reason charting/technicals work. There are also some legitimate ways in which charting would work even if no one ever tried to play with technical analysis.
APT - chart only, page-571
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