Efficient-market hypothesis The efficient-market hypothesis (EMH) contradicts the basic tenets of technical analysis by stating that past prices cannot be used to profitably predict future prices. Thus it holds that technical analysis cannot be effective. Economist Eugene Fama published the seminal paper on the EMH in the Journal of Finance in 1970, and said "In short, the evidence in support of the efficient markets model is extensive, and (somewhat uniquely in economics) contradictory evidence is sparse."Eugene Fama, "Efficient Capital Markets: A Review of Theory and Empirical Work," The Journal of Finance, volume 25, issue 2 (May 1970), pp. 383–417.
Efficient-market hypothesis The efficient-market hypothesis (EMH) contradicts the basic tenets of technical analysis by stating that past pric!es cannot be used to profitably predict future prices. Thus it holds tha,t technical analysis cannot be effe,ctive. Economist Eugene Fama published the seminal paper on the EMH in the Journal of Finance in 1970, and said "In short, the evidence in support of the efficient markets model is extensive, and (somewhat uniquely in economics) contradictory evidence is sparse."Eugene Fama, "Efficient Capital Markets: A Review of Theory and Empirical Work," The Journal of Finance, volume 25, issue 2 (May 1970), pp. 383–417.