Which of the following phenomena followed by technical analysts is most consistent with the efficient markets hypothesis?

Question

Quizplus · Accepted Answer

The concept of self-destructing patterns aligns with the efficient markets hypothesis, as it suggests that any trading strategies or patterns discovered by traders will eventually become useless as other market participants catch on and the market adjusts. This supports the idea that all relevant information is quickly and accurately reflected in the current market price, which is a key tenet of the efficient markets hypothesis. The other options, such as Elliot waves, resistance levels, and support levels, all rely on the idea that past prices and patterns can be used to predict future prices and movements, which contradicts the efficient markets hypothesis.

Which of the Following Phenomena Followed by Technical Analysts Is