John Magee, co-author of the technical analysis bible, "Technical Analysis of Stock Trends" said that all he needed for trading was a closed room and his charts. The closed room would ensure that he was not disturbed by news and rumors. The charts will tell all that is to know, he felt.
Time changes and while the basic concepts of life remain the same, tactics have to change. Day trading and Swing Trading is far more prevalent now. There is significant impact of world markets, news in current day markets as compared to 70 years ago. Technical Analysis must be dynamic enough to adapt to new circumstances. Our tactics must adapt! That is why new concepts such as opening range breakouts, morning news reversals have come up.
Why am I writing this? Because I referred to Infosys results and suggested that the results may have an impact on the trend.
Should a technical trader consider news at all? Mohit Singhal asks "I am beginner in trading, but i have a small confussion... doing trading with technical why do we talk about news and events.. we should always talk about the overall setimaent and Chart.. in your previous blog i read you were talking about berish head and shoulder breakout and it was sucessfull so i took a short position in nifty with a SL. Is this not a mix of technical and fundamental.... ??"
My Notes: The environment affects sentiment, and short term traders should be aware of it. This was also the reason for considering Infosys results.
Viral Rajnikant sums up my thoughts correctly when he says: "Quite possibly, he(Sudarshan) might have been writing his posts based on SENTIMENTAL impact that the Infy results leaves via its Annual Guidance."