Which of the following practices are typical of technical analysis?
I. charting
II. computing moving averages
III. computing financial ratios
IV. plotting advance-decline lines
A) I and III only
B) I, II and IV only
C) I, II and III only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

Technical analysis involves analyzing historical price and volume data to predict future market movements. Practices typical of technical analysis include charting (I), computing moving averages (II), and plotting advance-decline lines (IV). Computing financial ratios (III) is more associated with fundamental analysis, which evaluates a security's intrinsic value by examining related economic and financial factors.

Which of the Following Practices Are Typical of Technical Analysis