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Successful traders know that before stepping into the wilderness of the speculative markets, you need a solid understanding of basic market behaviour. But the conventional methods often fall short of providing this basic knowledge. Academics assert one thing, economists and fundamental analysts another, and technicians something altogether different. And, seemingly, none of them agree with each other.
Trading on Expectations explores the ideas behind the dominant schools of analysis, and shows the validity of each and demonstrates how each, albeit at different times, reflects what the market is doing. Sometimes market prices can be predicted using the economists' models; sometimes prices follow a 'random walk' as the academics claim; at other times price is responding to the patterns, trendlines, and breakout levels identified by technicians.
In this groundbreaking new book, Brendan Moynihan draws on his experience as a trader, analyst, and researcher to develop a method that focuses on the prime mover of prices and incorporates the strengths of the conventional methods. Drawing on the participant-focused Chicago Board of Trade Market Profileª and the psychologically focused Contrary Opinion, he synthesizes and modifies the best in these different methods and skilfully creates a single model of market behaviour - the Sentiment-Activity Model.
Trading on Expectations is a must read for all traders in stocks, options and futures.
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