Which of the following statements is true regarding the nature of prices in trend systems?

The assertion that prices can exhibit erratic behavior is correct because financial markets are influenced by a myriad of factors, including economic indicators, market sentiment, geopolitical events, and trader psychology. These influences can lead to volatility and unpredictable price movements, demonstrating that prices do not always move in a linear or predictable fashion.

In trend systems, while traders look to identify and capitalize on existing trends, the very nature of price movements in these environments can be unpredictable and erratic at times. This erratic behavior reflects sudden changes in supply and demand, market reactions to news, and shifts in trader sentiment which can lead to rapid price fluctuations. Understanding this volatility is essential for developing a robust trading strategy that can adapt to various market conditions.

The other options suggest that prices follow specific statistical distributions or predictable patterns, which do not adequately account for the complexities and irregularities observed in actual market behavior.