As a value investor, I do not believe the market is always right. My goal is to look for arbitrage among the short list of companies I want to own. I've often wondered if it is required to believe the market is always right to trade stocks using technical analysis. Is this the case? Opinions appreciated.
Nope. *Most* TA only depicts behavior and doesn't give a hoot about whether the market has correctly valued the stock. I suspect that the majority of us who use a little (or a lot) of TA have the same goal to identify arbitrage opportunities and, thus, appreciate market inefficiency for setting up good entries and exits.
In the short term the market tends to run off human emotion too. Human emotion is not always right, some companies sell off hard for no good reason. Being a value investor you know how to crunch the numbers. Find the stocks that have sold off for no good reason, but still maintain favorable financials or are undervalued compared to peers in their industry.
JUDGING THE MARKET BY ITS OWN ACTION https://stockaholics.net/threads/a-wyckoff-student-notebook.804/page-17
I never really look at it as right or wrong. If the market presents an opportunity I take it and if it doesn't I sit. It all about what your looking to accomplish because you can make money in a up or down market.
everyone has its own style of trading and strategy to do it so whenever market prices comes to your radar than you should trade it and always follow mkt... when prices are not in radar than just analyse market . i think excepts sudden whipsaws due to news other time market is always right ....