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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 content levelIntermediate 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: RWH

Closely associated with EMH is the random walk hypothesis (RWH). In this concept of the market, all changes in stock prices are entirely random and cannot be forecast with any reliability. If the EMH rationale is accepted, current prices reflect all known information. Thus, any further movement in price is subject to evolving information, but the direction of movement is entirely random.

However, if the market is truly random, trends may not develop. Prices would tend to move in a completely 50/50 manner, moving upward half of the time and downward the other half. The examination of any stock chart over time reveals that this does not occur. Trends for indexes, as well as for individual stocks, develop, move, and continue ...

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Publisher Resources

ISBN: 9780134190662Purchase book