1-the lack of great deal of info needed by security analysts, such as a info related to sales, earning, and capital utilized by product line and customers.
2-according to GAAP corporations may choose among several procedures for reporting expenses, assets, or liabilities.
3- many psychological factors do not appear in financial statements. Investor attitude could be important when investors become concerned about the risk from restrictions or taxes on products such as a tobacco or alcohol and political risk .
CHALLENGES to Technical trading Rules