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A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
book

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

by Michael C. Thomsett
July 2015
Intermediate to advanced
352 pages
9h 40m
English
Pearson
Content preview from A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

Other Price Theories: EMH

The markets are sometimes described as informationally efficient. This doesn’t mean that price movement is purely efficient, but that price movement is efficient in the way that it responds to publicly known information (whether true or not). The theory goes on to explain that because of this efficiency, it is not possible to consistently beat the average returns of the market.

The origin of EMH is traced to 1970 when Professor Eugene Fama of the University of Chicago Graduate School of Business (the Booth School) wrote that better-than-average returns are not possible based on the analysis of historical price information.6

The distinction between absolute efficiency and informationally efficient markets is key. If ...

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