Page 20 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 20

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News programs form OPINIONS; trading oscillators form
OPINIONS; and market analysts form OPINIONS. We do not know
how the markets will react to news and financial recommendations.
If we think we do, then we are forming an opinion about the news.

How many times have companies come out with great earnings and

sold off right after the announcement. And when the market does
sell off, the news commentator comes out and says “…the stock had

run up already in expectation of the good numbers and then sold
off…”. And, if instead the stock continued upward, the news
commentator would say, “…good earnings drove the market
upward…”. News commentators operate on 20/20 hindsight.
Traders don’t have this luxury.

Why Are Price And Volume The Truth?

Price and Volume are the truths of the market, everything else is a man
made measuring device that will most likely form destructive opinions.
Some people believe that measuring devices form a road map.
However, do we have a road map of our life in advance of our life? I
don’t think so. We may have a plan or fantasy about where we want to
go, but until it happens, it is still just a fantasy.

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