- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 56. Technical Analysis
- Subject 1. Definition and Scope
CFA Practice Question
A criticism of technical analysis trading rules is that ______
II. they may become self-fulfilling prophecies.
III. they may change over time.
I. they are often subjective.
II. they may become self-fulfilling prophecies.
III. they may change over time.
Correct Answer: I, II and III
User Contributed Comments 4
| User | Comment |
|---|---|
| Shaan23 | I thought technical analysis was objective(uses concrete data) compared to fundamental which uses subjective data(uses assumptions and estimations) |
| fidusing | why subjective? |
| Sarito | They also consider trends and events during time |
| mcbreatz | They can be subjective in that a trend is not usually obvious while it is happening and which trend can be subjective. From the reading for example a double top vs a triple top is not apparent until after one or the other has already occurred. |