When investors use past share price movements to make their investment decisions,they are using:
A) economic analysis.
B) factor analysis.
C) fundamental analysis.
D) technical analysis.

Question

Quizplus · Accepted Answer

When investors use past share price movements to make their investment decisions, they are using technical analysis. Technical analysis involves studying charts of past price movements and identifying patterns, trends, and momentum in order to predict future price movements. It is based on the idea that the market is essentially a crowd of investors who are constantly buying and selling, and that by studying the behavior of this crowd, it is possible to make profitable trading decisions.

When Investors Use Past Share Price Movements to Make Their