You cannot predict future prices and returns from past prices and returns. This statement describes what form of the Efficient Market Hypothesis
THERE ARE 3 FORMS OF EFFICIENT MARKET HYPOTHESIS : (1) WEAK FORM EFFICIENCY (2)SEMI-STRONG FORM EFFICIENCY (3) STRONG FORM EFFICIENCY
THE ABOVE STATEMENT DESCRIBES WEAK FORM OF EFFICIENT MARKET HYPOTHESIS.
ACCORDING TO WEAK FORM EFFICIENCY, PAST DATA DO NOT HELP IN PREDICTING THE FUTURE DATA. PAST EARNINGS WILL NOT BE INDICATIVE OF FUTURE EARNINGS. IT ALSO ASSUMES THAT EVEN TECHNICAL ANALYSIS WILL ALSO FAIL. & SOMETIMES FUNDAMENTAL ANALYSIS WILL ALSO FAIL.
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