It Is the Dollar-Weighted Collective Opinion of All Market Participants that Determines Whether a Stock Goes Up or Down

Mark Abraham, part of Abraham Trading, has made the point clear:

“While a fundamental analyst may be able to properly evaluate the economics underlying a stock, I do not believe they can predict how the masses will process this same information. Ultimately, it is the dollar-weighted collective opinion of all market participants that determines whether a stock goes up or down. This consensus is revealed by analyzing price.”

Erudite. More? See: Trend Following book.

You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content. Out April 24th 2017.