Some chartists believe that all known events are already reflected in the price patterns in the chart. They spend a lot of time trying to divine MA crossovers, MACD, Stochastics, Resistance Support lines and many more technical indicators. I too believe strongly in technical analysis but of course equally strongly that one piece of news trumps charts. This chart of Dolby is a a perfect example of this. The company looked like it was poised for a bounce. It was oversold, the RSI was diverging clearly heading in a positive direction while the price action was settling out. Then came the earnings. Chart patterns were blown apart.
