Sharechat Logo

Forum Archive Index - June 2001

Please note usage of the Forum is subject to the Terms & Conditions.

 
Messages by Date [ Next by Date Previous by Date ]
Messages by Thread [ Next by Thread Previous by Thread ]
Post to the Forum [ New message Reply to this message ]
Printable version
 

[sharechat] LEARNING TO INVEST >>>>>> TRENDS


From: "silverfox 101" <silverfox140@hotmail.com>
Date: Wed, 27 Jun 2001 18:06:10 +1200


Phaedrus, thinking out loud here. Starting from your TLS chart and working 
backwards, would the trendline be an indication of the value given to a 
share if it operated in a truly efficient market (ie. that all information 
about the share is reflected in its price)? So, for a constant 'up-slope', 
the company has a steady rate of growth in its intrinsic value. Any change 
in slope indicates a fundamental change in the value of the company's future 
prospects, and the oscillations around the trendline are the short-term 
market doing its thing. Is an acceptance of efficient market theory a hidden 
requisite of technical analysis?

As an aside, have you come across many shares that have a large curvature in 
one direction or the other over a long period such that a straight trendline 
differs significantly from the curve except for where it bisects at the 
beginning and end? (I'll try and draw one later if what I'm saying is not 
clear). If so, how is that dealt with?

Silverfox
_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.

 
Messages by Date [ Next by Date: Re: [sharechat] LEARNING TO INVEST >>>>>> TRENDS G Stolwyk
Previous by Date: Re: [sharechat] LEARNING TO INVEST>>>Disciplined Investment Decisions mrgoodall ]
Messages by Thread [ Next by Thread: [sharechat] LEARNING TO INVEST >>>>>> TRENDS Phaedrus
Previous by Thread: Re: [sharechat] W.H.Smiths and Whitcolls peter j. ashford ]
Post to the Forum [ New message Reply to this message ]

IRG See IRG research reports