Real Reasons Behind Market Patterns

NoDoji said:
The reasons are that if a certain line in the sand is crossed, technical analysis of similar price action over the past N decades indicates that price will continue moving in the direction of the breach until price gets to, or close to, the next key S/R level in line to be tested. So if you're looking to buy low, you wait for that next level and watch the reaction there to decide whether to buy or not. Chances are pretty good that initiating buyers will sit on the sidelines until that key level is approached, initiating sellers will want to get in close to where the line in the sand was crossed, and longs who don't want to risk the full excursion to that next S level will sell part or possibly all of their position, all of which tends to accelerate the downward momentum.
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That's fine from trading standpoint, but what is the cause of those patterns forming in your opinion? They form randomly, then attract people and become non-random or form as non-random action from the start?
 
ammo said:
imagine buying hotdogs for a nickel and selling em for 6 at the stadium, what happens surrounding that 5 95 markup instead of a nickel markup, marketing, they give you a ticket a seat a ballgame 60000 fans and tv crews,cheerleaders halftime shows, without all of that you would find out where you could get them for a nickel and tell the other guy ..something... if they didnt make these trendlines work, give the idiots in the seats something intellectual to feel about themselves,and instead just take all their money at once, the game would be over.... there is no way appl is worth 98 then 103 then 98 in the span of 30 minutes, without all that action ,without moving the ball of yarn, the cat would just sit there
in one word, marketing
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So in your opinion, whole TA is marketed product pushed by someone to retail customers?
 
cornix said:
So in your opinion, whole TA is marketed product pushed by someone to retail customers?
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i think the largest banks and the fed are using the market as an advertising campaign to garner bond sales ,sort of an economic or currency /bonds war since 08
prior to that the market like te gdp was/is? fueled by buyers and sellers but ..there are monopolies, and they have deadly information and massive accounts, they see those s/r lines ,those fibs ,chart cycle patterns, and could easily take advantage of the smaller retail crowd in a much larger way, but then they would kill their golden goose
before 08,bear stearns would use it's knowledge as one of those 5 or so largest houses to prey on the other largest houses ,whale on whale so to speak, some believe that's why they werent saved. now they are all working together.
so i am not saying that it's entirely a sham, just saying that it's not a religion or something you should blindly believe in, one should always try to have as large of a scope on things as they can grasp and never get comfortable with it, always look for ways to expand that as the market evolves
global scientists are presently trying to expand their knowledge on climate change, these once in a huindred year rains are happening every couple of years recently
back to your original question, i think a lot of times those lines are manufactured, it creates order, like roads, making order out of chaos , easier to make or control money, the economy
 
So we have at least one interesting theory here: that major TA structures are manufactured artificially in order to keep market within somewhat logical boundaries...
 
Definitely that's not a clear matter to discuss. Nevertheless, very interesting. Having an academic background, I never was satisfied with just "this works" approach. Always need answers WHY it works as well.
 
cash dow trans and ndx, have some work to do in ndx,trans and dow to get this market to drop,spx is the only one in a clear drop, the others are still above earlier resistance breakout levels
 
you can see above the structure of ta and how well it works, i think its built to simplify things, maximize profit, and now accepted as the norm, how else would they be able to get all the stock prices of 1000's of companies to rise and fall in unison
 
Could it be everything is simply so arbed-out nowadays with all those algos exploiting every little discrepancy that it causes synchronous moves?
 
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