Market Discounts Everything

One of the key assumption which is the driving force for us to believe the Technical Analysis (Price Action) is “Markets discount everything and its visible on the chart”

This assumption tells us that all known and unknown information in the public domain is reflected in the latest stock price. For example, an insider / some investor came to know that company is in a turnaround situation because of govt. policies / management change etc; due to which he starts to buy heavily. By the time, an common man knows about it by way of news/ earnings, it would have already moved about 50% - 100%.

But a technical analyst knows that some thing is about to happen in this stock at the time of insider buying itself as it reflects on the chart.