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Technical analysis is not a reliable strategy from "summary" of A Random Walk Down Wall Street by Burton Gordon Malkiel
Technical analysis, the practice of using historical price and volume data to predict future price movements, has long been a popular strategy among investors. However, it is important to recognize the limitations of this approach. While it may seem intuitive to believe that patterns in past price movements can provide insight into future performance, the reality is far more complex. One of the main reasons why technical analysis is not a reliable strategy is the concept of market efficiency. The efficient market hypothesis asserts that all available information is already reflected in stock prices, making it impossible to consistently outperform the market through analysis of historical data alone. In other words, the idea that one can predict future price movements based on past patt...
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