Clustering Illusion

We see patterns and streaks in random sequences that don't actually exist. Our brains are pattern-recognition machines that find meaning even in pure noise.

• A basketball player who scores several times in a row is said to have a 'hot hand' — but statistical analysis shows it is pure chance.
• During WWII, Londoners believed German bombs were targeting specific neighborhoods based on hit patterns — but analysis showed the distribution was random.
• Investors see trends and cycles in stock price charts that are, in reality, random fluctuations.