A Major Problem with Technical Trading Strategies Is That ________

question 27

Multiple Choice

A major problem with technical trading strategies is that ________.

• A) it is very difficult to identify a true trend before the fact
• B) it is very difficult to identify the correct trend after the fact
• C) it is so easy to identify trends that all investors quickly do so
• D) Kondratieff showed that you can't identify trends without 48 to 60 years of data

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, not involving forced sale or liquidation.

Weighted Average

A mathematical calculation that takes into account both the magnitude and the significance of each number in a set to find an average value weighted by importance or size.

Homogeneous Products

Goods that are considered identical by consumers, and can be substituted for one another, such as commodities.

Perpetual Methods

Inventory accounting systems where updates are made continuously to reflect the buying, selling, and production of goods.