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:
“Government ... thought [it] could transform the country through massive national programs, but often the programs did not work. Too often they only made things worse. In our rush to accomplish great deeds quickly, we trampled on sound principles of restraint and endangered the rights of individuals.”
—Gerald R. Ford (b. 1913)
“The scope of modern government in what it can and ought to accomplish for its people has been widened far beyond the principles laid down by the old “laissez faire” school of political rights, and the widening has met popular approval.”
—William Howard Taft (1857–1930)
“Syntax is the study of the principles and processes by which sentences are constructed in particular languages. Syntactic investigation of a given language has as its goal the construction of a grammar that can be viewed as a device of some sort for producing the sentences of the language under analysis.”
—Noam Chomsky (b. 1928)