tendency of technical analysts to assume that repeating patterns will continue to apply to equity securities (or equity markets) because such patterns were identified in past behaviors. Random events (or better stated, events stemming from changing conditions) can occur that will affect any equity security (or any equity market). After such an event, the assessment of technical analysis about an equity stock would change. By that time, however, it would be too late for technical analysis to change any outcomes resulting from acting on the prior assessment.
If one accepts MalkielÆs (2004) argument, technical analysts continued to be hired by investment banks because the mumbo-jumbo assessments and recommendations that they generate are great marketing tools for use in attracting investors ôwho just want to get richö and who have neither the patience nor the inclination to invest the time and effort required to make a sound investment. Considered within this cont
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