Hi Dubya,I have pondered on this myself many occasions and I do...

Hi Dubya,

I have pondered on this myself many occasions and I do believe it is true in some respect. However, if this was a self fulfilling prophecy then you have to ask how did technical analysis come to be so popular before there were enough tech traders to have any influence on share price?
Either the first few million technical traders were all very good at guessing share prices or there is some working methodology behind it.

I can just see how the original technical traders managed in the early days when no-one was doing it:

TECH: Hey mate, come on over, Ive found this fantastic way of trading the share market.

FRIEND: How much money have you made?

TECH: Money Ive made? Iv'e lost a fortune. I'll never be able to make money on it until there are millions using the same technique.

FRIEND: So why are you continuing if you are making massive losses?

TECH: Because i know that in the next 40-50 years when this really catches on I will start making money because it will be self fulfilling prophecy then...

FRIEND: WOW... sounds like the wave of the future... can you teach me technical analysis so i can make a big loss too?

TECH: Sure can mate... the more the merrier

Now apparently this conversation occurred just before the crash of 1929... hmmm... i wonder?