Of course, the market cannot take into account events that by definition cannot be predicted. However, the price already takes into account the emotions of the participants, economic data of individual companies and states, including readings of inflation and interest rates, and even possible risks in case of unforeseen developments.
In no case does this mean that the market itself or its participants know absolutely everything, and even future events. This only means that all that has happened has already been captured in the price, and any new information will also be taken into account.
A huge number of technical indicators have been created on this base, and today you can find an indicator to analyze literally anything. But while indicators are often used mindlessly, Dow analyzed the market entirely, relying on the natural segmentation of market players.
Many of us have heard scares about the Forex market in the United States - someone thinks that trade on currencies in the country of the star-striped flag is completely prohibited, someone on the contrary believes that "everything in America is definitely honest!." And what really?
Since the 2008 financial crisis, the U.S. government has been greatly concerned about regulating the financial system, putting forward a number of strict restrictions and rules. All this is obliged to stabilize the financial situation in the country and protect capital from a sharp collapse of the market. Some of these restrictions directly affect the forex market, making virtually any operations on it outlawed.
There is a lot of debate about intuition in trading. Most agree that intuition is nothing more than an instant interpretation of previous experience at the subconscious level.
However, there are studies that show that the ability to predict further price movement depends on the skills of "social analysis," i.e. analysis of other people 's behavior.
In 2010, The Journal of Finance published a stunning study conducted by researchers at California University of Technology, Brawlier, Quartz and Bossaerts. By conducting experiments on the brain and human behavior, they have demonstrated that it is social cognition rather than mathematical and logical reasoning that underpins the less understandable X-factor in traders.