A major problem with technical trading strategies is that ________.
A) it is very difficult to identify a true trend before the fact
B) it is very difficult to identify the correct trend after the fact
C) it is so easy to identify trends that all investors quickly do so
D) Kondratieff showed that you can't identify trends without 48 to 60 years of data

Question

Quizplus · Accepted Answer

Technical trading strategies rely on identifying trends in stock prices, but it can be very difficult to identify a true trend before it happens. This is because there are a lot of random fluctuations in stock prices that can make it seem like a trend is starting when it's really not. This can lead to false signals and losses for investors who rely too heavily on technical analysis.

A Major Problem with Technical Trading Strategies Is That ________