Question

what is meant by technical traders? If a trade is exclusively a "technical trader" how much...

what is meant by technical traders? If a trade is exclusively a "technical trader" how much he view "efficient market"?

Homework Answers

Answer #1

A technical trader is a trader who trades in the market on the basis of technical analysis that is charts and diagrams. Thy analyse charts and on the basis of these charts they analyse weather in which direction the markets are about to move.

These kinds of traders do not take into account the fundamental information about the stock that is supply and demand. If a trader is a technical analyst, there he does not believe that the markets are efficient as all the three forms of market efficiency:

the strong form, weak form and semi strong form of market efficiency believes that technical analysis helps a trader earn abnormal returns. It believes that technical analysis is useless as it uses the past information to predict the future prices.

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