69 sats \ 3 replies \ @siggy47 1 Feb freebie \ on: Are Technical Analysts Just Fortune Tellers? bitcoin
I'm by no means an expert, but when I was into investing I was more of a fundamentals guy. I picked up enough to know that the theory is based on human psychology. Humans react predictably to price action. But, what has happened is that traders react to the patterns. It seems almost like a solipsistic loop at times.
the fundamental stuff makes more sense to me… a business earns a flow of cash, and is worth some multiple of that depending on the time value of money.
if humans all react in predictable ways to price action, and traders are exploiting those patterns for their own profits, aren’t we back to square one where nobody really knows where prices will move next?