Kinematics, Calculus, and other higher maths

[ProfLogic]

Quote from Walther:

I look at markets little diferently then majority does. I want to trade when cycle( daily , intraday ) is completed and enter just before or when direction of the market reverses. I do not care where price will be when I enter . Right now i will watch S&P around 14:30 est for a profitable entry. At what price? I have no clue and I do not care. I just wait for a time of the reversal. If i do not get confirmation around that time, I will jump into pool, have a drink and wait for another reversal time. If you use a time as a primary indicator, trading is just much easier.

Ok, now I understand. Thanks for the clarification.

 

[pattersb]

Quote from pound_sterling:


In regards to "mechanics", i refer to kinematics, i disagree regarding the problem with constants, i am not referring to complex equations; but rather the "simple" equations relating to velocity and acceleration. Just looking at a chart one should see the correlation between the two. The problem i am currently investigating is the proper application of these formulas to the market. I'm certain someone else must have endeavoured to apply the wisdom of the physical sciences to price action.

Im no expert by any stretch. But I'm focusing on identifying statistical anomolies and betting against them.

Fear and Greed drive the markets. Greed drives them up, Fear brings them right back down. There is probably an equation to be derived in that dynamic somehow.

Some stocks take two steps forward, and one step back. Others take one step forward and two steps back. Figure out which is which, and buy after the first move, and sell after the second.

 

[toc]

'Fear and Greed drive the markets.'

How do you define fear and greed in market terms? Mathematical terms?

 

[nononsense]

Quote from toc:

'Fear and Greed drive the markets.'

How do you define fear and greed in market terms? Mathematical terms?

Something like:
lim E(payoff) -> infinity

 

[OddTrader]

Quote from pattersb:

Figure out which is which, and buy after the first move, and sell after the second.

I think you're quite right, but I need first to figure out how to figure out which is which.

 

[catlee]

I agree that basically all higher MAths,calculus etc is quite useless with the stock market.One thing though that I have always found working for me are trend following systems.Use of "moving averages" and "channel breakouts" - determine the trend of the market.

Only disadvantage,as pointed out in www.mytradingsystem.net, is the fake turning points where the casual trader may get caught.Little understanding,usually comes with experience,hels.