The methodology of technical analysis assumes that
A) forecasting the economy is a critical ingredient to financial analysis
B) forecasting the firm's earnings is most critical to financial analysis
C) it is useless to attempt to "beat the market"
D) history tends to repeat itself in the stock markets

Question

Quizplus · Accepted Answer

Technical analysis is based on the assumption that market trends, patterns, and behaviors are cyclical and tend to repeat themselves. It uses historical price and volume data to make predictions about future price movements.

The Methodology of Technical Analysis Assumes That