Kinematics, Calculus, and other higher maths

Discussion in 'Technical Analysis' started by pound_sterling, May 22, 2006.

  1. Ok, now I understand. Thanks for the clarification.
     
    #101     May 31, 2006
  2. pattersb

    pattersb Guest

    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.
     
    #102     May 31, 2006
  3. toc

    toc

    'Fear and Greed drive the markets.'

    How do you define fear and greed in market terms? Mathematical terms?
     
    #103     May 31, 2006
  4. Something like:
    lim E(payoff) -> infinity

    :)
     
    #104     Jun 1, 2006
  5. I think you're quite right, but I need first to figure out how to figure out which is which.
     
    #105     Jun 1, 2006
  6. catlee

    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.
     
    #106     Jun 1, 2006