Same reason why it works on stocks
support and resistance
- Thread starter ranjan
- Start date
Same reason why it works on stocks
"Ours is not to question why.
Ours is just to Do or get a j o b."
Hey man it's understandable that you have this question.
We all wonder that.
Nobody's shown proof of how tradable the answer is far as I've seen.
It's a topic worthy of some PhD level stats analysis.
When you find it, post it right here baby.
Ya gotchcher correlation coefficient variability, and response simultaneity, all kinds of crap to look at there. Get your foot in the door at a hedge fund. Write it up.
Do you have any charts to demonstrate what you're talking about in plain pictures, like maybe 100 of em? lol. Save everybody a lot of work, because otherwise, choose your poison, pay your money and take your ride.
One follows the other, idx / stocks, but I've never bothered to see if one leads and when.
Hmmmmm.
What products do you trade?
What timeframe charts?
Think of it this way - if more of the NiftyFifty go up cumulatively (based on how index is computed) index will likewise go up a certain amount. Same but in reverse, if more go down cumulatively.
Gaps on the open many trading days can get things out of sync, arbs step to "fix" that. That is why indexes reflect true support and resistance of the components. Not each one exactly but again ... cumulatively.
Imo, support and resistance is much stronger in indexes than individual stocks, as individual stocks can be far more erratic. Indexes are machines that rarely break 'the process' imo, and individual stocks can be selectively manipulated so the machine can go where it needs to go (probably contrary to how most people think it works.) That said, real support and resistance isn't what most think it is either, but that's another story altogether.
i kind of wander why breakout and breakdowns work in index as just the futures or options are used for trading indexes and increased positioning in F&O doesn't affect the underlying stocks. Or it is due to market makers algos. I kinda of puzzled at these things
bro I trade lot of stuff like stocks, indices F&O and currencies. i have read a lot about central banks controlling the directions of currency like JP Morgan who basically make the market in currencies so I generally avoid large positions in currencies. but the main thing I am concerned about is indices. You can justify TA in stocks but in indices it puzzles me. Basically I trade indian indices nifty and banknifty and tried to understand S&R in them. I observe that whenever nifty50 is near to a major support in 5 min TF, a major weightage stock is also near its support or a number of less weightage stocks are near their support. Howz that possible? its only possible only when indices and stocks are systematically managed by some institutional or exchange algos. or maybe institutions defend the level by some algos so as make people go in a particular direction they want them to go. or may be due to market makers hedging index f&o with etf and hence arbs make the constituents to change. Its very puzzling. I know general people don't bother about these, but these questions puzzle me a lot. All these concepts can enhance our interpretation of markets and better allow us to anticipate future moves
You will be dead in a week, weighed down by such heavy duty complexity
To kill yourself quicker solve this problem instead .............
Starting from first principles and without the use of computers or calculators or smartphones prove that
cot 7½° = √2 + √3 + √4 + √6
You will be dead in a week, weighed down by such heavy duty complexity
To kill yourself quicker solve this problem instead .............
Starting from first principles and without the use of computers or calculators or smartphones prove that
cot 7½° = √2 + √3 + √4 + √6
then find these 4 boys and ask them to help you
You will be dead in a week, weighed down by such heavy duty complexity
To kill yourself quicker solve this problem instead .............
Starting from first principles and without the use of computers or calculators or smartphones prove that
cot 7½° = √2 + √3 + √4 + √6
Being able to PROVE an equation is not the same thing as coming up with an answer to an equation.
I also have a mathematical equation that cannot be proven, regarding base math. As opposed to your trigonometry question. You are not all that, dude.