This describes a share which has a market price in excess of its “real” value – in the opinion of the person who uses the term. The real value of a share is always a matter of opinion, and at any one time some investors will regard a share as over-priced – while others will consider it to be under-priced – and if the opinion of pessimists carries more weight than that of the optimists, the market price will fall and vice versa. At any point in time, the market price represents the algebraic average of all investors’ opinions relating to the share’s real value, while technical analysis is the search for that real value, and is the study of investors’ opinions concerning the real value – as reflected in the share’s price pattern.

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