Technicians don't believe in random walk theory, but it makes sense because stock prices do go random all the time, only in very small scale. Big price movements are driven by factors beyond randomness, such as earnings and economic news.
So there you have it, my rules of thumb is, random walk works when one is looking at 10% of the daily ATR, but beyond that price is driven by the trend and other factors.
shorts:
longs:
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