Page 23 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 23

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What if the next week a famous collector buys a similar painting by the
same artist/painter for $4,000, and now the value of your painting
increases to $3,000!

All the INDICATORS said that it was overbought at $1,500 because the
price went up too high in a short period of time. The REALITY is that
because of supply and demand, prices are exactly where they should be.
Regardless of the reasons! There is no such thing in an efficient market
as OVERBOUGHT and OVERSOLD. Prices are where they are
because that is where they are supposed to be!

Supply = Demand

When Supply equals Demand, both the seller and the buyer disagree on
Value, but agree on Price. When this happens, it is a truth in the
marketplace. The AMOUNT of Supply and Demand occurring in the
market is called Volume. That also is a truth. Both Price and Volume
are ABSOLUTE and are “truths” of the market because they are not
distorted. (Indicators used in technical analysis often distort Price and
Volume).

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