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:
“His principles are like the bristles of a domesticated pig, they don’t pierce through the pork.”
—Franz Grillparzer (1791–1872)
“That, upon the whole, we may conclude that the Christian religion not only was at first attended with miracles, but even at this day cannot be believed by any reasonable person without one. Mere reason is insufficient to convince us of its veracity: And whoever is moved by Faith to assent to it, is conscious of a continued miracle in his own person, which subverts all the principles of his understanding, and gives him a determination to believe what is most contrary to custom and experience.”
—David Hume (1711–1776)
“Language is a process of free creation; its laws and principles are fixed, but the manner in which the principles of generation are used is free and infinitely varied. Even the interpretation and use of words involves a process of free creation.”
—Noam Chomsky (b. 1928)