How Markets Really Work

For years, traders and investors have been using unprovenassumptions about popular patterns such as breakouts, momentum, newhighs, new lows, market breadth, put/call ratios and more withoutknowing if there is a statistical edge. Common wisdom holds that the stock markets are ever changing.But, as it turns out, common wisdom can be wrong. Offering acomprehensive look back at the way the markets have acted over thelast two decades, How Markets Really Work: A Quantitative Guideto Stock Market Behavior, Second Edition shows that nothing haschanged, that the markets behave the same way today as they have inyears past, and that understanding this puts you in a primeposition to profit. Written by two top financial experts and filledwith charts and graphs that illustrate the market concepts theydevelop, the book takes a sometimes contrarian view of everythingfrom market edges to historical volatility, and from volume toput/call ratio, giving you all that you need to truly understandhow the markets function. Fully revised and updated, How MarketsReally Work, Second Edition takes a level-headed, data-drivenlook at the markets to show how they function and how you can applythat information intelligently when making investmentdecisions.