Whose statement regarding the technical analysis department is most accurate?
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Could someone please help?
Technical analysis is a price chart tool, it does not take fundamental risk into account, and the entry-exit points _ always _ have asymmetric return/risk pay-offs, so you cannot say that it is not an anomaly, by definition. So point number 2 is wrong.
Point 1 _ may _ be compatible with sound investment practices, but it sometimes points in the other direction.
Point 3 is correct by elimination. If you want to know why it is correct, you’ll just have to read a TA book, lol.
People use technical and fundamental analysis to find underpriced securites. Apparently technical doesn’t work that great any more, Rodriguez answer is the closest. It also says potential, not definite. These types of questions can be a royal pain because at times two of the three have potential and the best way to narrow it down is a combination of which is closest to the definition and the use of definite words like always, sometimes, never.