technical analysis quote from Top Trader book

TradeBlazer said:
In the book 'Market Wizards: Interviews with Top Traders', the chapter on Bruce Kovner has an interesting passage that reads:


I do both TA and fundamental analysis and thought it was interesting to compare TA to a doctor taking a patient's vitals before making any further assessment of their current health.
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Good .
And he learned the hard way, glad he shared it, when broker calls + says ''soybeans are going' to the moon .....................'' N THAT never happened[moon LOL] + never let a broker , for a commission + bid \ask ruin a trade ''LOL
More good:caution::caution:
I like more than 11 points analysis myself ;
but its mostly based on prep + close price...... , so need for a hair trigger.
But I do like a smooth trigger, nothing worse than jagged -ragged trigger pull.
Even a ragged jagged sloppy trigger pull ,does not matter , with 777 pellets per 1oz, in a 12 gauge shotgun.....................................................
 
wxytrader said:
No man, you're the one who's saying that lol.
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This is what you said:
The historical prices are where you get the probabilities for future price movements. It's like sports betting odds lol. There are methods of predicting future price levels based on previous data. It's the only data we have to make such predictions.
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This is what I said:
Lol so tell me how a stock price can be higher than its past high if that higher price does not exist in the sample? It would register as a probability of 0 in your world.
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wxytrader said:
Not at all. Price is determined...therefore earnings reports have no affect on the actual movement of price. If you want to get technical, earnings reports, news, government policies will facilitate the pre-determination that is being reflected in the chart. So if you really want to extrapolate from this, one could say that the chart can be used as a predictor of these things.

Think Harry Seldon from Foundation series. It's why the renaissance fund ignored fundamentals and news entirely.
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Alright, I am not going to get involved in any discussions since you could very easily prove your claims.

In the next few weeks I will ask you if you expect the market to go up or down with certain news events or earnings. You should have no issue getting most of them correct, right?

Let's start with some earnings, Home Depot and Alibaba tomorrow, up or down tomorrow and by how much?
 
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