Trends Versus Price
Price is a constantly shifting and moving reflection of supply and demand for shares of stock. The market reacts to a huge array of information, both true and false, concerning current and future earnings, competitive stance and changes in management, mergers and acquisitions (rumored and completed), regulatory problems, product recalls, and dozens of other factors.
In comparison, a trend is a reflection of the collective factors influencing price. The very existence of trends—easily visible through a glance at long-term stock charts—demonstrates with profound clarity that there is nothing random about price movement. In fact, the easily observed reality of trends in many shapes and duration completely destroys the intangible ...
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