Page "Technical analysis" Paragraph 40
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Technicians say that EMH ignores the way markets work, in that many investors base their expectations on past earnings or track record, for example.
Because future stock prices can be strongly influenced by investor expectations, technicians claim it only follows that past prices influence future prices.
They also point to research in the field of behavioral finance, specifically that people are not the rational participants EMH makes them out to be.
Technicians have long said that irrational human behavior influences stock prices, and that this behavior leads to predictable outcomes.
Author David Aronson says that the theory of behavioral finance blends with the practice of technical analysis:
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