【摘要】Technical analysis is based upon three fundamental assumptions:(1)the behavior of market embodies all information; (2) stock prices move along trends; and (3) history will recur, which established statistical averages method's dominant role in securities analysis. Although statistical averages method is very popular in practice, its power is diminished by some misforcasting. There are many factors, which may cause misforcasting. One of the most important factors is that the conditions required for statistical analysis and forecasting are not satisfied. If the movement of stock prices, for the most part, is normally distributed, the application of statistical inference, moving averages method and regresion analysis in securities analysis will have satisfacetory results.