Technical analysts basically believe that security prices:
A) react rapidly to new information, and share market prices are determined by the interaction of demand and supply.
B) react rapidly to new information, and security dealers provide liquidity.
C) react gradually to new information, and market prices are determined by the interaction of supply and demand.
D) react gradually to new information, and security dealers provide liquidity.

Question

Quizplus · Accepted Answer

Technical analysts believe that security prices react gradually to new information, and that market prices are determined by the interaction of supply and demand. This approach is based on the idea that market trends, as revealed by analyzing charts and other technical indicators, can help predict future price movements. Technical analysts generally do not rely on fundamental analysis, or an analysis of a company's financial health and performance, to make investment decisions.

Technical Analysts Basically Believe That Security Prices