Academic studies tend to discredit the validity of technical analysis.Which of the following is true?
A)This can be viewed as support technical analysis.
B)It can be rational for individual traders to use technical analysis-if enough traders use technical analysis the predictions based on it can become self-fulfilling to some extent,at least in the short-run.
C)The statement can be explained by the difficulty professors may have in differentiating between technical analysis and fundamental analysis.
D)none of the options

Question

Quizplus · Accepted Answer

The statement acknowledges that technical analysis may not be validated by academic studies, but suggests that it can still be useful for individual traders if enough market participants use it. This is known as the "self-fulfilling prophecy" effect, where technical analysis can influence market behavior in the short-term.

Academic Studies Tend to Discredit the Validity of Technical Analysis