Is Forex Market Random?
Are Forex charts random? Do attempts to predict the market and to trade currencies for profit even make sense? Lots of traders and simply curious people ask these questions and find a lot of contradicting answers online. The number of traders who claim getting consistent profits from the foreign exchange market is counterbalanced by a number of persons stating that the market cannot be predicted because
One of the most famous supporting work for the randomness theory is Eugene Fama's article Random Walks In Stock Market Prices. Despite it seeming contradiction, the market randomness theory is based on the
It is really difficult to prove this or that point of view here. Largely, because the claims of randomness or non-randomness of a financial markets seem to be unfalsifiable. However, it must be said that showing that a random chart produces all the chart patterns sought by technical analysts and that the latter could be easily tricked into analyzing a random chart doesn't mean that all charts containing chart patterns are random.
It is up to you actually to decide whether Forex market is random or not. Below, you will find two charts: one — real, the other — not so.
The second chart is a randomly generated one:
If you want to share your thoughts on whether the Forex market is random or not, please proceed to our forum.