- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 56. Technical Analysis
- Subject 1. Definition and Scope
CFA Practice Question
Which statement is false regarding technical analysis?
A. Some applications of technical analysis are subjective.
B. Technical analysis of any financial instrument requires detailed knowledge of that instrument.
C. A key shortcoming of technical analysis is that it can be late in identifying changes in trends or patterns.
Explanation: A is true. The interpretation of findings is often subjective.
B is false. A technician just needs the chart that represents the action in a freely traded market.
C is also true.
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