Are the markets all that randomized? Some would argue that the markets move cyclically and oscillate essentially between different levels whereas others would argue that the market is based a lot off random movements, some by perception, other movements by different factors indirectly or directly affecting the economy.
The whole idea behind the fundamental and technical analysis is simple: take human emotions out of the equation and there shouldn't be any economic crises. Sure, markets can get "unpredictable" and theories such as the Random Walk Hypothesis developed by Burton Malkiel at Princeton. Essentially, he argues that the market is just as predictable in trending as the flipping of a coin. Heads, well it looks like the market is up today; tails, we're down.
There are many individuals that believe this theory, as I am sure, part of it is to be believed though are markets truly just all randomized movements? Try arguing the Random Walk Hypothesis to Ralph Elliot, the creator of the Elliot Wave.
This strategy he developed, a strategy, is based on social behavior and places movements in the market based on this behavior. It is a very simple strategy, impulse and corrective wave patterns. Depending on the sequence and the occurrence of these waves, this tells the trader where the market may be residing at during one of the many stages or levels. Its almost trying to predict the general location of the market, like Heisenburg's uncertainty principle, except for the market since the trader never fully knows where the exact placement of the market is in relation to the waves and when he does seem to know the market movement he doesn't know where it resides on the exact Elliot wave.
Needless to say, the Elliot Wave and similar strategies have been successful numerous times yet still the market has that twinge of uncertainty about it, whether it be the ECB announcing dovish policies for the Euro or the Fed's whole "To taper or not, that is the question." The market has a certain level of plain, old-fashioned unpredictability to it and especially in highly-volatile, highly-liquid markets there is a larger element of risk that anyone should be aware of.
The markets are completely unpredictable as some would say, yet others would argue right back that not only are the markets sometimes predictable, but during those levels of predictability, profits can be made. And those that do find accurate predictions, make a nice profit.
