Asked by Cameron Brown on Jun 16, 2024
Verified
Which of the following is not a method employed by followers of technical analysis?
A) charting
B) relative strength analysis
C) earnings forecasting
D) trading around support and resistance levels
Technical Analysis
The study of historical market data, including price and volume, to forecast future market behavior.
Earnings Forecasting
The process of estimating the future profits of a company, often used by investors to make informed investment decisions.
- Identify the methods and limitations of technical analysis.
Verified Answer
MB
Michelle BagleyJun 22, 2024
Final Answer :
C
Explanation :
Technical analysis is a trading strategy that utilizes charts and past price and volume data to predict future market trends. Earnings forecasting, on the other hand, is a fundamental analysis technique that analyzes a company's financial statements to determine its future growth potential. Therefore, C is not a method employed by followers of technical analysis.
Learning Objectives
- Identify the methods and limitations of technical analysis.
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