According to a technician, stock prices tend to move:
A) |
in trends that persist. | |
B) |
in an advance-decline series. | |
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Other assumptions of technical analysis include: values, and thus prices, are determined by supply and demand, supply and demand is driven by both rational and irrational behavior, and while the cause for changes in supply and demand are difficult to determine, the actual shifts in supply and demand can be observed in market price behavior.
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