Top Highlights

• the relationship between price and value was the key-that price away from value usually represented opportunity.
• I realized that I had to broaden my knowledge base if I hoped to be successful. So
• Schultz defined the minimum trend as the smallest unit of meaningful market activity.
• Whenever the market moved away from value, I would take the opposite side of the trade. Please look at Figure 2-2 to the pointsillustrated. I would sell the zone indicated by the number 1 or buy the zone indicated by the number 2 because I felt that the market would return to value (the center of the bell curve).
• An important distinction should be made between two types of markets-the initiative market and the responsive market. An initiative market is one characterized by buying as the price moves higher and away from value or selling as the price moves lower and away from value.