Market bottom is in- End this doom and gloom

No, I don't believe in trends as a price movement. I do however believe in the inertia of the psychological state. It is measured differently and it is treated differently as well. Price observation is always deceiving as one will always struggle with the right time frame, right interpolation techniques etc. Observing the psycho is different. As you know, I have different methods of measuring market's emotions and sentiment. So, sorry, no dark side for me. Although, I am sure you could teach me some dirty tricks and nice dances around the fire!

 

May I ask you to expand a little bit on this?

 

Do you have a theoretical basis for the (alleged) disconnect between crowd psychology and price?

 

Sure. I use (for almost 15 years now) is the ration of the integral size changes weighted but he level those changes are occurring on the book. This ratio then is normalized by the amount of the unique price moves and the volume of the filled orders. I called it the “Inertia of the Sentiment". Those graphs that you can see on my screens are all measuring those parameters. Of course, there is a lot more to it.
Cheers.

 

What does it matter to a TRADER?

If one is always "biased" in their belief system, how are they able to CLEARLY OBSERVE what is happening and able to react in a successful manner, in the first place?

 

Sure I have. If I were to plot the price action vs. the sentiment you will see the oscillator (price) over a general direction of the buy/sell order flow. Price is a ripple effect of the sentiment inertia. I could expand more if you'd like. I like your questions. They are always intelligent and polite. So, please, any time!

 

I do not understand how your post has any bearing on my post, which you quoted. Do you?

 

Fed doesn't care about inflation anymore. It's not their concern.

 

I like your picture. You look good on it. Well ... horns could be longer though.

 

Thank you MAESTRO.