How Markets Really Work

<b>For years, traders and investors have been using unproven assumptions about popular patterns such as breakouts, momentum, new highs, new lows, market breadth, put/call ratios and more without knowing if there is a statistical edge.</b> <p>Common wisdom holds that the stock markets are ever changing. But, as it turns out, common wisdom can be wrong. Offering a comprehensive look back at the way the markets have acted over the last two decades, <i>How Markets Really Work: A Quantitative Guide to Stock Market Behavior, Second Edition</i> shows that nothing has changed, that the markets behave the same way today as they have in years past, and that understanding this puts you in a prime position to profit. Written by two top financial experts and filled with charts and graphs that illustrate the market concepts they develop, the book takes a sometimes contrarian view of everything from market edges to historical volatility, and from volume to put/call ratio, giving you all that you need to truly understand how the markets function. Fully revised and updated, <i>How Markets Really Work, Second Edition</i> takes a level-headed, data-driven look at the markets to show how they function and how you can apply that information intelligently when making investment decisions.</p>