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Surely even the most ardent EMH opponent would at least agree that information is relevant, even if it hasn't been fully absorbed by the market yet, right? I've
by apetresc 6y ago
Surely even the most ardent EMH opponent would at least agree that information is relevant, even if it hasn't been fully absorbed by the market yet, right? I've never met any proponent of technical analysis who maintains that they can divine patterns purely from the shape of the candles, without knowing what they're trading or what day it is?
That flies right past EMH and into the realm of pure numerology.
- bsamuels 6y agoHonestly, I have no idea. I don't know any proprietary traders who use candlesticks/TA. The one or two people I know who use TA are hobbyists who watched some videos on youtube. I might be in the wrong here, but all my experience points at TA being something that's used to sell online courses/generate advertising revenue rather than being a legitimate way to trade.
- saltyfamiliar 6y ago> I've never met any proponent of technical analysis who maintains that they can divine patterns purely from the shape of the candles, without knowing what they're trading or what day it is? I have. The theory is that the fundamentals of the security are reflected in it's price movements, so reading its price action is roughly analogous to reading news relevant to the instrument. Also it's not really about looking at the "shapes of candles." That's a frankly primitive approach to technical analysis, and one of the biggest reasons that people keep drawing comparisons to astrology, numerology, divination, etc..