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To: NOW who wrote (45581)7/14/2002 4:41:55 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 209892
 
Correct and it misleads on long term analysis. Short term when all other variables are more or less stable it can be a very useful tool, but not on a span of several years when the other ingredients in the economy are changing.

True that human nature does not change much over hundreds of years but macroeconomics change constantly



To: NOW who wrote (45581)7/14/2002 4:52:48 PM
From: UnBelievable  Respond to of 209892
 
Technical Analysis Has Certain Assumptions Upon Which It Is Based

Not many but a few:

The market can not be controlled by monopoly or oligopoly, and

All things being equal, all market participants prefer to pay less for something rather than more.

I'm not cynical enough to think that either of these would not be the case in the stock market <gg> but to the extent that they were, it could seriously degrade the usefulness of technical analysis.