Sometimes technical analysis works by creating a self-fulfulling prophecy.....a prediction that, in being made, actually causes itself to become true. In other words, a false prophetic statement -- a prophecy declared as truth when it is not -- may sufficiently influence people, either through fear or logical confusion, so that their reactions ultimately fulfil the false prophecy.
for instance the "golden cross" thing, lots of people believe that the trend will go up after the 50ma crosses over the 200ma. Lots of people will pull the trigger because of this, and if enough people do, then the price really will go up, even if it wasn't "meant" to. So sometimes TA works simply because enough people believe it will. Go NVMG!
