Glossary

Consensual Market Value

• aggregate opinion of fair price or aggregate perceived “value”

Long Term

• a period of several years to a couple of decades

Overbought

• when widespread buying drives price up to a point where all demand has been exhausted in this price range (see Supply and Demand)

Oversold

• when widespread selling drives price down until all supply has been consumed in this price range (see Supply and Demand)

Price Distension

• digression of price from Consensual Market Value which is not great enough to significantly alter the Consensual Market Value

Supply and Demand

• desire to sell and desire to buy. The desire to buy or sell is constrained by a price range which is based on each market participant’s perception of what constitutes a fair price