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Technicals

stochastic–random

Futures prices, according to believers of the efficient market hypothesis, follow a stochastic process, meaning they move in a random manner. This theory suggests that all available information is already reflected in the market price, making it impossible to consistently predict future movements. This concept is fundamental in understanding the behavior of financial markets and is often debated among economists and investors. By acknowledging the unpredictable nature of futures prices, we can better navigate the dynamic world of finance and make informed decisions for our investments.

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