Why Technical Analysis Fails in Modern Markets

Added: 2026-05-23

[00:00:00]profit maximizing behavior.

[00:00:03]Traders anticipate moves and signals before they even happen, before they even materialize.

[00:00:11]The same thing happens with information.

[00:00:13]Information is acted upon instantaneously, sometimes even before it's released. And so there's no way to make money on new information that comes out about a company.

[00:00:25]Because as soon as it goes public, the stock instantaneously reacts or has already reacted.

[00:00:32]>> [laughter] >> And so, um you know, if a stock can go to $40 tomorrow, why shouldn't it go to $40 today, right? That's profit maximizing behavior. People want to get ahead. They want to get ahead of the crowd.

[00:00:46]So for those reasons, technical analysis does not work.