Quote from marketsurfer:
Wrong, Jem. No disrespect meant, but this is not correct. If you use stats you don't need "charts" and "patterns"-- which are the fundamental tool of technical analysis.
Three topics are included in this statement:
statistics
charts, and
TA.
Most people start out by looking at things. It takes about 40 hours to get all of the scope and bounding done to have a system of how the market works.
From that point on there is a chioce made to find out how to make money. You either collect data and process it statistically OR you code up the operation of the market.
Quants do stats.
Scientists do codes.
I have quant training (about a PhD equivalent) since it was a job asset at IBM when I worked there. At IBM it was used for culling talent using third party judged (Quant instructors(ADJ Profs) graded our work).
Most people have figured out that capturing price change during trends makes money. This is the standard of performance for people who test performance of systems of making money.
In TA there are events in trends. For price 10 are observable and 11 are observable in volume. Any one can draw these out on two separate sheets of paper.
End Effects of trends occur twice in a trend: at the beginning and at the end. There are 35 such unique End Effects.
To make money using TA, a person monitors and analyzes the combinations and permutations of 21 price and volume events. When one of these does not occur, then the elements of the End Effects are examined and you find the one that qualifies.
I divided the 35 elements into 11 subsets; the largest two contain 14 and 8 elements, respectively. The remaining 9 subsets contain 13 elements collectively.
All 11 volume elements are coded. All 10 price elements are coded. All elements of the 11 subsets are coded and grouped within each subset for clarity.
To assemble the system of these things several mathematical tools are used; they include, criteria, filters, formulae, rules, and strategies. All together they form assorted libraries which are dedicated to the overall algorithm, and the applications of the algorithms to specific markets for taking the full offer of the market.
I have met a lot of people who are very skilled. I know when I am talking to a skilled and knowledgeable scientist, coder and trader.
Also, I have met a lot of venders, salesmen and writers who make money as parasites. I know what these people are when I talk with them.
Money is made in markets in one of two direct ways: trading or providing services for fees to people who cannot trade.
Indirectly, people make money providing technical services and trading platforms.
an induced form of income may be attained by providing substantive information or by providing stories about market myths. There is a spectrum of buyers.
Lastly, there is an econometric substition effect whereby people and money is siphoned off into other money making fields that compete with the direct, indirect, and induced money making.
If anyone has a question about any one element of the market among the 56 descrete elemts, I will explain it in spades as an example of what is what.
So far all posters in this thread are posting heresay which is of little value, if any.
It is important, once in a while in ET, to post a substantive comment that has verifyable information about markets and their system of operation. All elements of markets have a common connection. I, purposefully, did not define it with specificity in scientific jargon.
