Anyone know of a good book that explains the possible psychology behind chart patterns/price action in detail? For example, psychology behind support, resistance, flags, wedges, trends, breakouts, breakouts failing, trading ranges, etc. Looking for a better picture of who the participants could be in all of the above, who's in control, who's not, etc. For example, are new bulls buying, bears shorting, bears buying back there shorts, smart money buying, market makers running stops, etc. Basically, looking for the probable mechanism of action/steps as the patterns/price action starts, unfolds, and ends to better understand the mechanics behind the patterns we commonly trade.
There is no rosetta stone of the melting pot of concepts that you have listed published that I'm aware of - some are in one paradigm, others in other paradigm(s). A personal rosetta stone is possible and some would consider that an edge. However, given the definition of paradigm, there are logical incongruencies, paradoxes and conundrums that require assimilation between them (paradigms.) From a high level you have COT reports and lists Commercials, Large and Small Speculators. They are functionally distinct in motivation and thus interpret and act on market data independently. You also have a taxonomy of trader types that L. Harris has defined, each with different needs of market participation. All of it gets deep and requires time and experience to understand. For example; a simplistic view is the interpretation of a Failed Breakout of a range and a reversal to the other side. Retail generally views that as a pattern failure of continuation also known as change. Others would view that in terms of liquidity, balance, imbalance, rebalance between premium and discount. ymmv
Brooks but it's a real slog and many think he's full of it. I've found his reasons for price movement very helpful even if it isn't accurate. If you go down that path I'd recommend using logseq or something similar to tag/store your charts for review.
Your brain sees patterns where there aren’t. There are some truths in certain levels (options pinning), and momentum has a clear impact, but reading too much into patterns and price action is a great way to go crazy. This idea that behind every tick is intention is stupid… markets move on marginal flows which are driven by economic AND uneconomic actors.
%% IBD founder has some better + best books; William O Neil. MAYbe once every 12 months you may note how fundamentals win in the end. Smaller times frames, noise, ticks or muskitoes are more bird food than trading help. [Unless one eats like a bird\LOL] Example/ WMT, not a stock tip/, had good earnings; + as noted in WSJ are pushing back on suppliers not to raise prices.................................................WSJ is not near as accurate as IBD newspaper, but i read Sam Walton's book + shop WMT+ Cash Savers Store . WSJ did have real negative article on underperformer TGT and American family Assoc, some time ago.