Introduction to the Art and Science of Technical Analysis
Chapter 1 Review Questions
- What are the challenges to technical analysis?
- A basic assumption in technical analysis is that the market discounts everything.
EMH also requires the discounting of all information. In what ways are they
different? - Describe how an analyst may resolve conflicting signals or chart patterns.
- Explain why identifying a trend change is largely a subjective exercise.
- Is random walk a true reflection of the markets?
- Describe the three levels of discounting new information under EMH.
- What is a good definition of technical analysis?
- List as many advantages and disadvantages of using technical analysis as you
can.
referenCeS
Edwards, Robert D., and John Magee. 2007. Technical Analysis of Stock Trends. New
York: AMACOM).
Kirkpatrick, Charles, and Julie Dahlquist. 2007. Technical Analysis: The Complete Re-
source for Financial Market Technicians. Upper Saddle River, NJ: Pearson Education Inc.
Murphy, John. 1999. Technical Analysis of the Financial Markets. (New York: New York
Institute of Finance (NYIF).
Pring, Martin J. 2002. Technical Analysis Explained: The Successful Investor’s Guide to
Spotting Investment Trends and Turning Points. 4th ed. New York: McGraw‐Hill.