Question

All of the following statements regarding technical analysis are correct except A) technical analysts use terms such as trendline, support, and resistance in analyzing stocks. B) technical analysts rely on charts to predict the future prices of stocks. C) technical analysts rely heavily on financial ratios in their analysis of stocks. D) technical analysts attempt to predict the future movement of stock prices based on past trends.

Answer 1

C

Step-by-step explanation:

Technical analysis is a trading tool used to evaluate investment and trading opportunities by gathering and analyzing trends from trading activities , thereby it is able to predict future prices of stocks based on past trends.

The analyst does not rely on financial ratios in the analysis of stocks as financial ratio is mostly used by fundamental analyst in financial performance evaluation and not by technical analysts in predicting changes in stock movements