RE: Funda V technicals28 Sep 2025 07:58
Price and volume data is widely available for thousands of stocks, over dozens of markets across decades of time. If you could really use such simple data to predict the future of stock prices, then it would be a very easy thing to prove using a simple algorithm. There would be books and books written on the subject and every investment bank in the world would be doing it, until the net gains are competed away. But I have yet to see this book. There is some evidence of long term trend reversal (over 3-5 years underperforming stocks tend to outperform). And some evidence of serial correlation over one year (stocks that do well over one year tend to do well the following year). But the evidence is pretty weak and gets even worse when risk adjusted. The typical response to this sort of conclusion from chartists is that charting is an art (no - charts are just visual depictions of data) and/or that there is a mythical book that proves it all works and that I just haven’t found a copy yet (right next to gizmo in a small antique shop somewhere). Anyway, to each their own, but people are right to ask for proof. Valuation and behavioural finance are more my thing (where there is abundant proof). IMO GLA DYOR etc