Tuesday, January 19, 2010

Pricing

Price reflects the perception and action taken by the market participants. It is the urgency between buyers and sellers in the trading pit that creates price movement.

Thus, all fundamental factors are quickly discounted in price. Therefore, by studying the price charts, you are indirectly seeing the fundamental and market psychology all at once - after all the market is feed by two emotions - Greed and Fear and once you understand that, then you begin to understand the psychology of the market and how it relates to the chart patterns.
Data Window.

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