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I have always thought that the technical analysis is limited to the price/time/volume relationship. If you consider building mathematical models of human behavior using other than the price/time inputs being a part of technical analysis then there is no argument. However, there is a big...

I consider CNBC people being as dumb as they come. Their statements are so moronic sometimes they make me sick! No one can say for certain that the price will move X points up or down. I wonder sometimes did anybody actually measure their IQ? I wouldn't be surprised to find it lower than 80...

If that would be as simple as you described everybody on ET would be a millionaire by now. Unfortunately, it is infinitely more complex. :)

Any swarm can be described by just three simple rules: 1. Each member of the swarm is only aware of its nearest neighbors (usually 2- 6 of them) 2. Each member keeps the constant distance between its close neighbors 3. Each member moves in the direction of its neighbors with relatively...

I assume that the reference is made to the information propagation that is faster than speed of light. Two particles spread by a significant distance had virtually simultaneous change in spin when one of them is modulated.

Do you mean particles spin synchronization experiment?

Yes, of course. I was just referring to what I do, which is extremely liquid options on extremely liquid securities. I have no idea how to benefit from the illiquid options. It might be the whole new game. Unfortunately I have never spent any time on it at all. I was trying to point out that the...

I agree with nitro. Only well priced, liquid options exhibit consistent behavior.

You more than welcome. I have worked with Robert for a while.

Contamination principles have nothing to do with the spontaneous synchronization. If my "poor" explanations were not too clear, I apologize.

I have a Ph.D. in electronics (Thyristor Cycloconverters) and a Ph.D. in Cybernetics (mathematical Psychology, a part of AI).

There is a tendency there to "drive" the price of the underlying security to the strike price that has the most OI, but it only happens if the prices are very close anyway. One can utilize it but overall it does not have required consistency to design an ongoing investing strategy.

You bought in-the-money puts? :confused:

Very good! The brightest ET members unite! Getting warmer and warmer. I am glad that the ability to think out of the box is still alive! Very good find! Without saying too much I was a part of this research (and somewhat I still am).

Here is the book I got many of my inspirations from. http://pespmc1.vub.ac.be/books/IntroCyb.pdf Now the soldier realised what a capital tinder-box this was. If he struck it once, the dog came who sat upon the chest of copper money, if he struck it twice, the dog came who had the...

An interesting vision. I like it. Thinking like that is an example of a creative, intelligent approach to trading. Of course, the challenge is in quantifying the vision and making it robust enough to trade by it. But overall, it is in the general direction of my thinking as well. Good luck!

I am afraid that you drew a wrong conclusion here. I am saying that the information is not in the actual numbers but rather in their relationships and relative frequencies between the changes in the option parameters. This relationship is extremely reliable and very predictive. The phenomenon of...

Again, an excellent question! Yes, an individual behavior could potentially be quite deceptive. However, synchronized change in premiums of a long chain of options is immune to it; the same way one idiot (could be even a president) is not an indication of an entire nation’s intellectual level.

No, sorry, it is not what I meant. Good try though!

There are different parts of option chains that have different reaction times. Closer to the money options have higher frequency responses. I use this approach to trade in wide variety of time frames from 10 – 15 minutes to 2 – 3 weeks. It is, however, not very useful for sub-minute ranges...