Prices move in trends.
History repeats itself.
Market actions/events discount everything.
The last statement reminds us that action taken in the marketplace or unforeseen global events make technical analysis less useful until stability returns.
Many factors are affecting the FOREX market everyday. They may be political developments, natural disasters, or just rumors of such. Market participants react to these developments seeking to protect their money. Thus, unexpected, and even dramatic moves occur in this market at times. That is why often the very expectation of a certain development can influence the market more than the event itself. It is for this reason that the currency market is never in equilibrium, and its behavior can be defined as the perennial quest for an ever-elusive equilibrium.
