The Behavior of Stock-Market Prices pdf download.
The purpose of this paper will be todiscuss first in more detail the theoryunderlying the random-walk model andthen to test the model’s empirical validity.The main conclusion will be that thedata seem to present consistent andstrong support for the model.This implies,of course,that chart reading,
though perhaps an interesting pastime,is of no real value to the stock market investor.This is an extreme statement andthe chart reader is certainly free to takeexception.We suggest,however,thatsince the empirical evidence produced bythis and other studies in support of the random-walk model is now so voluminous,the counterarguments of the chartreader will be completely lacking inforce if they are not equally well supported by empirical work.