History repeats itself. As a direct consequence of the first assumption, technicians believe there is little profit to be gained by researching economic fundamentals. This research in their opinion will lead to explanation of the current price rather than an accurate prediction of the future price . They have found commodity prices do not fluctuate randomly, like the chaotic scrawl of a small child, but follow distinct patterns, like the crest and peaks of waves. By trying to identify known patterns or discernible trends early stages their development, technicians predict rate movement based upon the historical continuations of those movements.
Technicians ignore statements by politicians and government officials.
If the statement is important, the statement will become reflected in the exchange rate. Fundamental analysts are fascinated with the statements of government officials, in particular those that have the power to influence a government's central bank interest rates. The selling of dollars by traders which follow fundamental would trigger, a downward movement in U.S. dollar against other currencies. The technician watching his charts while Greenspan spoke would notice a plunge in the dollar on the charts. As different exchange rates began new trends, the technician would change his position in the market.