Principles
A fundamental principle of technical analysis is that a market's price reflects all relevant information, so their analysis looks at the history of a security's trading pattern rather than external drivers such as economic, fundamental and news events. Therefore, price action would also tend to repeat itself due many investors collectively tend toward patterned behavior – hence technicians' focus on identifiable trends and conditions.
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Famous quotes containing the word principles:
“Custom is our nature.... What are our natural principles but principles of custom?”
—Blaise Pascal (1623–1662)
“All those who write either explicitly or by insinuation against the dignity, freedom, and immortality of the human soul, may so far forth be justly said to unhinge the principles of morality, and destroy the means of making men reasonably virtuous.”
—George Berkeley (1685–1753)
“Struggle is the father of all things.... It is not by the principles of humanity that man lives or is able to preserve himself above the animal world, but solely by means of the most brutal struggle.”
—Adolf Hitler (1889–1945)