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NCFM Technical Analysis Practice Questions - NCFM Technical Analysis Module Exam
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Question Number 5
What is a major limitation of technical analysis?
It requires access to internal company databases
It cannot be applied to highly liquid markets
It can produce false breakout signals in range-bound markets
It is only applicable to equity markets and cannot be used for commodities
✔ Correct Answer:
It can produce false breakout signals in range-bound markets
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