Does Technical Analysis Work in Nonliquid Markets?
Anonymous
Points: 0
Joined: 1969-12-31
Posted on: Mon, 09/18/2006 - 5:00am
Technical anaylsis tries to profit from past price patterns. In order for this to work, the stock must attract numerous traders and investors. Afterall, isnt technical anaylsis a study of human behavior?
My question is can technical analysis be applied to non liquied markets? Wouldn't illiquid stocks be a victim of market manipulation? Isnt it hard to trade the charts under these circumstances?
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Technical anaylsis tries to profit from past price patterns. In order for this to work, the stock must attract numerous traders and investors. Afterall, isnt technical anaylsis a study of human behavior?
My question is can technical analysis be applied to non liquied markets? Wouldn't illiquid stocks be a victim of market manipulation? Isnt it hard to trade the charts under these circumstances?