Are there patterns in financial ratios? by Clifford J. Sherry, Ph.D.
Technical analysts strive to find patterns in the past history of the prices of stocks and commodities
(using charts, moving averages, etc.) that will allow them to predict future prices or price movements.
The major argument against this idea is the assumption that prices are determined by a random and
independent process. I have developed a number of statistical techniques that will allow you to determine
if the process you are interested in is random (Stocks & Commodities, March 1986) and/or independent
(October 1985, April 1986) using real data.