I saw an interview with Ed Seykota recently, and here is one small paragraph I found interesting:
Are price moves random? Is there any basis for trends? What makes prices move?
I feel the "aha!" process lies at the heart of price change . For instance, consider the series: OTTFFSSE. What is the next letter? This puzzle creates tension — until you see the first letters of the ordinal numbers — one, two. "Aha!" you say. A lot happens during an "aha." The puzzle dies and the tension dissipates.
A societal "aha!" drives price. Read the newspapers and the news magazines during a major move. At first, no one gets why the move is happening. There's a lot of confusion. Part of the move's way up, some people get it. At the end, everybody gets it. The tension is resolved and the move ends.
Read the rest of the interview here: http://www.meta-formula.com/support-files/ed-seykota-of-technical-tools.pdf
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