[White-Haired Stock God: Technical Analysis is Astrology for Traders, Stock Prices Don’t Rise Because of 'Golden Waterfall Candle' Patterns] BlockBeats News, June 14 — Serenity, known as the 'White-Haired Stock God,' gave a strong critique when responding to a question about using technical analysis: My opinion may upset many people, but technical analysis (TA) is astrology for traders. Its primary function is to confirm biases and leverage trader psychology to find entry points. It can help you understand what other retail investors and traders are thinking and believing at the moment, but it cannot reliably predict the true potential for a stock's rise. Serenity provided examples, stating that SPCE's previous surge was not due to the appearance of a 'Space Comet Fire Dragon Candle' on the chart, but rather because the market was pricing in future revenues for companies like JBL and GlobalFoundries. Similarly, AXTI's 8000% spike was not driven by a 'Golden Waterfall Candle Alert,' but by fundamental factors such as indium phosphide substrates, export controls, and demand for photonics. Serenity emphasized that the correct research approach should focus on thematic correlations (e.g., the linkage between LITE and AAOI), news catalysts, forward revenue projections, macro events, financial reports, float dynamics, and game theory to deduce a company's reasonable valuation. Technical analysis should only be used as a tool to assist in finding entry points and managing risk; it should never be relied upon to determine where a stock will ultimately go. Serenity cited IREN as an example—many people drew chart patterns predicting prices above $120, but in reality, the company first needs to digest $6 billion in ATM issuance. These technical patterns are essentially useless. Fundamentals, catalysts, and thematic research determine the direction, and relying solely on technical analysis in sectors like AI and semiconductors can easily lead to failure. [Original Link]