Which of the following statements about technical analysis is false? Technical analysis:
A) analyzes data for the purpose of identifying recurring patterns.
B) examines the basic question of whether excess supply or demand exists for a stock.
C) must be used in conjunction with fundamental analysis when valuing stocks.
D) uses graphical charting of price changes and volume over time.

Question

Quizplus · Accepted Answer

Technical analysis focuses on the study of market action, primarily through the use of charts, for the purpose of forecasting future price trends. It does not necessarily have to be used in conjunction with fundamental analysis, as it can be used independently for trading decisions. Fundamental analysis, on the other hand, examines a company's financials, industry conditions, and other factors to determine a stock's intrinsic value.

Which of the Following Statements About Technical Analysis Is False