Would it mean TA in your opinion works only in highly speculative markets driven by greed and fear in purest form?
Would you apply TA to anything but financial markets?
- Thread starter cornix
- Start date
Would it mean TA in your opinion works only in highly speculative markets driven by greed and fear in purest form?
Many businesses already do what you suggested.
Yet, they don't call it technical analysis.
I am probably unaware of that, but have yet to hear about a company looking for TA patterns in order to predict prices of certain products.
Could you please give me a couple of samples.
Few examples Sir
hedging
stop runs / head fakes (FBOs)
bot trading (scalping)
pairs trading
Non of these are concerned with supply or demand - they are trades for purposes other than supply or demand - but all move price to various degrees (cent's / tics / pips / whatever)
**And..., there are more - but who am I to ruin the quest (fun is in the journey)
(figure out the **and - you will be surprised
=================
Supply / demand is one of those useless terms used in this business
It makes folks appear knowledgeable - when in fact they are idiots
It serves no useful purpose when trading
It only known after the fact
RN
That's one great answer, RN!
So you basically say that in short-term supply/demand has not much to do with forces behind market prices?
I started this thread and am asking all these weird questions, because I want to better understand real forces behind prices.
In my "real" business that's certainly supply/demand in it's most classic fashion. Now we come closer to saying that in financial markets it probably isn't. It gets interesting!
One more thought:
In physical trade, supply/demand is more often dictated by the benefit of owning something (using it). Of course there are speculative deals in R/E, arts etc. but for the sake of clarity we won't consider them here.
Now, in financial markets, supply/demand is mostly driven by implied change in price. In other word, demand for ES increases when more people think ES price will increase, which closes the loop of the micro-bubble cycle, until it finally bursts. Happens on every level from scalping to long-term investing. That's more complicated relationship between S/D and prices.
Any criticism of this rant will be appreciated.
In physical trade, supply/demand is more often dictated by the benefit of owning something (using it). Of course there are speculative deals in R/E, arts etc. but for the sake of clarity we won't consider them here.
Now, in financial markets, supply/demand is mostly driven by implied change in price. In other word, demand for ES increases when more people think ES price will increase, which closes the loop of the micro-bubble cycle, until it finally bursts. Happens on every level from scalping to long-term investing. That's more complicated relationship between S/D and prices.
Any criticism of this rant will be appreciated.
Don't know that I'd be that specific. TA gives a description of what people are actually doing with their money... buying and selling. And of course you need to get "enough" of that right without getting too much of it big-time wrong.
There are regularities in buying-selling behavior in the financial markets which you can learn to exploit for profit.... that's TA.
Last edited:
Today its becoming more common in physical trade where the buyer only has a picture or video of the item prior to purchase. Simply, the seller is very trusted and respected in that business...that's good enough for the buyer that what he/she sees in the picture or video is exactly what has been purchase.
Your thought of implied change in price is taught in college economics. Its not a complicated relationship as you may have thought
Your thought of implied change in price is taught in college economics. Its not a complicated relationship as you may have thought
Right, I sell physical items myself and customers only see pictures or videos.
Not trying to say price based on price implication is that complicated, but it certainly is more complex behavior than simple purchase for the sake of use.
i was thinking of trying it with sport betting. Charting win loss to get onbegining of a wining streak or end of wining streak . maybe fibs would come in handy