Bob Evans created the Optimism Pessimism Index, this time tested tool is one all WYckoff traders should employ.
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When learning about this keep in mind this Wyckoff law:
The Law of Effort vs Results
Simply stated, if there is an effort, the result must be in proportion to that effort and cannot be separated from it. If it is not, it is an indication of other principles in action. Think of the effort as the volume on a move, and the result is the corresponding price action. These two should be in harmony. If you have a lot of volume, you should see a lot of move, if you don't...why? What is happening? This is where we become the detective, use our tools, evaluate that price action (result), with the corresponding volume (effort), and make some deductions based on the "balance of probabilities".
"My satisfaction always came from beating the market, solving the puzzle. The money was the reward, but it was not the main reason I loved the market. The stock market is the greatest, most complex puzzle ever invented - and it pays the biggest jackpot...it was never the money that drove me. It was the game, solving the puzzle, beating the market that had confused and confounded the greatest minds in history. For me, that passion, the juice, the exhilaration was in beating the game, a game that was a living dynamic riddle." ~ Jesse Livermore
"A market is the combined behavior of thousands of people responding to information, misinformation and whim." ~ Kenneth Chang
"It's easier to fool people, than to convince them they have been fooled." ~ Mark Twain
"Because of the extreme challenge, one must commit full attention to it." Market speculation is "no different than trying to be a successful doctor or lawyer ... you simply must devote yourself full-time to the study of your craft." ~ Bernard Baruch
"The main purpose of the stock market is to make fools of as many men as possible." ~ Bernard Baruch