In the 1950s William Dunnigan developed two stock trading systems called the Thrust Method and the One Way Formula. In 1983, a book entitled The Templeton Touch, by William Proctor, disclosed that one of Templeton's 22 principles for stock market investing was that stock price fluctuations are proportional to the square root of the price. Norman Fosback used the theory in a 1976 publication called Stock Market Logic to make the case that the normal trading range of low price stocks provides greater profit opportunities than the normal trading range of high price stocks. References to the Square Root Theory as a predictor of stock prices pops up every now and then in financial writings.
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