Except for FOMC days! When the markets go crazy because two lines crossed or because of super-excitement over a change in Fed policy?
technical analysis quote from Top Trader book
- Thread starter TradeBlazer
- Start date
Not at all. Price is determined...therefore earnings reports have no affect on the actual movement of price. If you want to get technical, earnings reports, news, government policies will facilitate the pre-determination that is being reflected in the chart. So if you really want to extrapolate from this, one could say that the chart can be used as a predictor of these things.
Think Harry Seldon from Foundation series. It's why the renaissance fund ignored fundamentals and news entirely.
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Lol what gibberish are you speaking? RenTech was primarily concerned with microstructure and winning share as markets went through "disintermediation" -- but even those dislocations are quite constrained and they had to limit the capital they deploy.
"therefore earnings reports have no affect on the actual movement of price" -- lol.. earnings are 2% of days and 20% of volatility...
You're clearly really smart and must be making a killing trading technicals trading against mlp, baly, citadel, p72, ep, etc.
Lol what gibberish are you speaking? RenTech was primarily concerned with microstructure and winning share as markets went through "disintermediation" -- but even those dislocations are quite constrained and they had to limit the capital they deploy.
"therefore earnings reports have no affect on the actual movement of price" -- lol.. earnings are 2% of days and 20% of volatility...
You're clearly really smart and must be making a killing trading technicals trading against mlp, baly, citadel, p72, ep, etc.
Volatility is determined by the chart. Earnings reports can align with an extension wave and give the illusion that they affected price but they do not affect the price.
Do you also drive your car by only looking at the rear view mirror?
No I do not drive my (2008) Lambo by only looking at the rear view mirror.
Anyway, what are you talking about? I have just described how the chart can essentially project the future.
lol dude are you really trying to flex with an old lambo? That’s my daily var, and I’m “small”.No I do not drive my (2008) Lambo by only looking at the rear view mirror.
Anyway, what are you talking about? I have just described how the chart can essentially project the future.
But yes please tell me more about how the chart forecasts everything…
What you see on the chart is historical prices and realized vol. Sure you can try to ride momentum or bet on mean reversion, but you don’t really know what’s going on and where price will go and by what time. It’s also hilarious that you think earnings don’t drive prices, given all the literature (and profitable trading strategies) there is on the subject. But I’m sure your analysis in Sierra chart on your windows vista pc is far superior.
lol dude are you really trying to flex with an old lambo? That’s my daily var, and I’m “small”.
But yes please tell me more about how the chart forecasts everything…
What you see on the chart is historical prices and realized vol. Sure you can try to ride momentum or bet on mean reversion, but you don’t really know what’s going on and where price will go and by what time. It’s also hilarious that you think earnings don’t drive prices, given all the literature (and profitable trading strategies) there is on the subject. But I’m sure your analysis in Sierra chart on your windows vista pc is far superior.
The historical prices are where you get the probabilities for future price movements. It's like sports betting odds lol. There are methods of predicting future price levels based on previous data. It's the only data we have to make such predictions. The entire quant trading industry is built on it!
Is this how you imagine your trading process is? lol
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Lol so tell me how a stock price can be higher than its past high if that higher price does not exist in the sample? It would register as a probability of 0 in your world.
Yes quants use price data, but they're conducting analysis on returns not on levels. Stock prices are nonstationary.