Market Tumicity

Discussion in 'Technical Analysis' started by Joe Doaks, Jan 25, 2012.

  1. I have been working on this sediment undicator for a few weeks now, struggling not so much with the idea, the algorithm, or the code, but more with what to call it. Basically it is a normalized measure of how price change stimulates traders to trade. I have tried out "Interest" and "Participation" and "Excitement" with little interest participation or excitement myself. This morning it struck me that it should be called "Tumicity" (not really a word before I coined it just now), because traders' big heads and their little heads are so intimately related. It would be incorrect to call it "Tumescence" because my tumescence might not compare favorably to your tumescence, but I deserve full credit for using what I have with great enthusiasm, hence the need to normalize market tumescence across the class of all traders by defining "Tumicity." The minimum value of Tumicity which I have measured is about 17, indicating that there is always latent interest in the little guy which never goes to zero, for trading or other uses. The maximum value of Tumicity I have normalized to 100, since you or I cannot get any more tumescent than we can get, no matter how hard we may try. At this point in the development I have identified the threshold of tradeability as a Tumicity value of about 57, matching to some degree the common experience that if you can get it up at least half way, you can use it. Example attached.