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:
“Magic is akin to science in that it always has a definite aim intimately associated with human instincts, needs, and pursuits. The magic art is directed towards the attainment of practical aims. Like other arts and crafts, it is also governed by a theory, by a system of principles which dictate the manner in which the act has to be performed in order to be effective.”
—Bronislaw Malinowski (1984–1942)
“The principles of the good society call for a concern with an order of being—which cannot be proved existentially to the sense organs—where it matters supremely that the human person is inviolable, that reason shall regulate the will, that truth shall prevail over error.”
—Walter Lippmann (1889–1974)
“When great changes occur in history, when great principles are involved, as a rule the majority are wrong.”
—Eugene V. Debs (1855–1926)