One market anomaly that offers some evidence in support of charting or other forms of technical analysis is
A) the small firm effect.
B) momentum.
C) the January effect.
D) the value effect.

Question

Quizplus · Accepted Answer

Momentum is a market anomaly that supports the use of charting or technical analysis. It refers to the tendency of securities that have performed well in the past to continue performing well in the short term, and vice versa for poorly performing securities. This trend-following behavior is a key concept in technical analysis.

One Market Anomaly That Offers Some Evidence in Support of Charting