You did an excellent job explaining this phenomenon and, you're right, it is very important in trading. Our brains are designed to "resolve ambiguities" at any cost, and hence, we often "see what we want to see" and "hear what we want to hear" (confirmation bias). "Motivated reasoning" is very dangerous to your financial health.
BTW, that last section ... Crypt, you're starting to think like a Market Maker. :-)
Smart. Remember, MM's don't care what the price is, they care whether there's a balance of buyers and sellers. If there isn't, they'll try to create one. Derivatives come in very handy for this purpose.
Quill