Tuesday, April 25, 2017
"Price itself should also be regarded as a fundamental"
There is a great post on macro-ops.com in the LESSONS FROM A TRADING GREAT series. Now they talk about Amos Hostetter. The most important idea for me is that the price itself can be regarded as a fundamental. This simply results in a feedback loop in the market. The big question is whether this feedback is positive or negative.The problem is that it can be both. If the price breaks out and there is a strong follow through, the feedback is positive and a trend is forming. If the breakout is muted that results in a false signal the feedback is negative. I think this is the most important is to asses time to time.