Not all ’causes’ or accumulations (or distributions) warrant a trade, some are good and some are not; it is the investor’s job to determine which are more Mr Hyde or Dr Jekyll.
The Law of Cause and Effect
In order for there to be an effect (change in price), there needs to be a cause. The effect will be in direct proportion to that cause. Best price moves occur when there has been enough time to allow for a period of accumulation or distribution (or in other words a cause).
