| The Three Premises of the Technical Approach: |
 Market Action Discounts Everything
Technical analysts believe that information that can affect the price fundamentally, politically, psychologically, or otherwise is fully reflected in the price and the price charts of the market.
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Prices move in Trends
The focus on price analysis is to identify the direction of trend reversals at early stages for the purpose of trading in the direction of those trends.
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| History Repeats Itself
The study of human psychology, which has been identified and categorized over history, identifies chart patterns. These historical chart patterns were successful in predicting future moves and it is assumed that they will continue to work well in the future. |
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What is Technical Analysis? |
