Some stocks tend to perform much better or worse than they should, hence there is a need to look beyond price moments and sudden increase in trade volumes. In other words, we might be buying or selling at the wrong time if we are reacting to the false signals sent by the market. Such scenarios include buying into a pump and dump situation when stock prices climb aggressively before plunging in a short period of time. In this post, we will be exploring methods to see if an aggressive rally or plunge is legitimate. Performance relative to analysts’ expectations This is kind of obvious especially when you just started investing because you will likely be bombarded with analyst calls every day pushing for people to buy, sell, or hold certain stocks on their radar. Usually, these analysts will come to a consensus in terms of the expectation of...