Trading on expectations

by Brendan Moynihan

Trading on Expectations explores the ideas behind the dominant schools of analysis, and shows the validity of each and demonstrates how each, albeit at different times, reflects what the market is doing. In this groundbreaking new book, Brendan Moynihan draws on his experience as a trader, analyst, and researcher to develop a method that focuses on the prime mover of prices and incorporates the strengths of the conventional methods. Drawing on the participant-focused Chicago Board of Trade Market Profile and the psychologically focused Contrary Opinion, he synthesizes and modifies the best in these different methods and skillfully creates a single model of market behavior - the Sentiment-Activity Model. Moynihan carefully describes how the combination of participants' actions and expectations about the future determines the direction of prices in the markets. This dynamic interaction between actions and expectations explains the emergence of the dominant phases of the markets: price tr