Question

Why does technical analysis receive little support from academically oriented students of investments?

Why does technical analysis receive little support from academically oriented students of investments?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In technical analysis investment and trading decisions are taken by using the technical charts, price, volume trends, chart patterns etc. Most of the empirical research in finance does not support technical analysis. If multiple trades of small gains are taken, then the results (overall gain or loss) may be inferior after adjusting the brokerage and other trading fees or commissions generated from various trades. Investors who believe the empirical research in finance or the fundamental analysis rarely depend on technical analysis. At most technical analysis can be used to confirm the timing (whether an asset is in up trend or down trend or reversal etc) of the investment decisions. That is why technical analysis receive little support from academically oriented students of investments.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why do we do technical analysis on futures/securities?
Why do we do technical analysis on futures/securities?
why professional scientific and technical services are important to agriculture forestry and fishing support services industry?
why professional scientific and technical services are important to agriculture forestry and fishing support services industry?
Describe the Kuznets' inverted U hypothesis. Does this hypothesis receive strong support from empirical studies? explain
Describe the Kuznets' inverted U hypothesis. Does this hypothesis receive strong support from empirical studies? explain
Why is technical complexity greatest with continuous-process technology and how does technical complexity affect organizational structure?
Why is technical complexity greatest with continuous-process technology and how does technical complexity affect organizational structure?
Think about writing a technical report. What are some of the artifacts identified during the analysis...
Think about writing a technical report. What are some of the artifacts identified during the analysis of the evidence that might be included in a technical report? Why did you choose these particular artifacts and what is their role within the report? How does the audience of a technical report affect the level of detail, content, and reporting style?
Does Gazprom Company receive any support or special treatment from the local or foreign government: example...
Does Gazprom Company receive any support or special treatment from the local or foreign government: example the export subsidy, VAT reductions, other tax reductions, labor conditions, environmental standards, etc
Explain and support graphically that society can reach allocative and technical efficiency without international trade (autarky).  Yet,...
Explain and support graphically that society can reach allocative and technical efficiency without international trade (autarky).  Yet, international trade can help raise overall well being if international relative price is different from the autarky price (this answer should use the graph with PPC, utility analysis and perfect competition blended together).
Why is it valuable for students with disabilities to receive instruction in self-determination, adaptive live skills...
Why is it valuable for students with disabilities to receive instruction in self-determination, adaptive live skills and employment during secondary school years? Why do you thing the capabilities of adults with disabilities are underestimated?
Why does Raul Malos leadership theory "the great man theory" have little validity or legitimacy?
Why does Raul Malos leadership theory "the great man theory" have little validity or legitimacy?
1) Why might parents of children diagnosed with various disorders/conditions perceive they receive less social support...
1) Why might parents of children diagnosed with various disorders/conditions perceive they receive less social support compared to parents of children who do not have any diagnoses? 2) How are stress and social support related? Is this relationship one-way (i.e., stress causes issues with social support; lack of social support causes stress) or bidirectional (i.e., stress causes issues with social support AND lack of social support causes stress)? Elaborate.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT