Principia de Technical Analysis

Discussion in 'Psychology' started by rlb21079, Mar 29, 2003.

  1. To what can we attribute the seemingly random though intuitively non-random movements of the market? Bloomberg radio/TV supposes that the market is news driven, and furthermore based on the collective forward-looking opinions of all investors. Pure fundamental anlaysis (if there is such a thing) assumes earnings are the sole mover of markets. For Elite Traders, certainly too savy a bunch to accept either of the aforementioned, seem not to care. Technical analysis does not utilize a causal approach. Rather, it seems, it is based on the developement of a system which captures the result of market movement without knowing its cause. Would it not be useful in developing such a system to ponder the causes of market movement?

    Certainly capital dynamics, as in the distribution of capital to potential investors, play a role. The method of capital input too would come into play.

    Admittedly, my ideas on this matter are less than cohesive, but as any trader must be, I am interested in expanding my understanding of the market. What I propose here is a ground-up logical approach to understanding the behaviour of men and women when faced with investing/trading opportunities.

    Accedere dialecticus...
  2. Boy you're just full of it aren't you :p

    ipso fatso...
  3. LongShot,

    You mock what you do not understand.

    aka: You are out of your element

  4. THANK GOD!!! :p
  5. God cannot help you.:D
  6. dbphoenix


    It's been done. See Wyckoff, Livermore, Neill, Dunnigan, Magee et al.

  7. I had to look that one up before I could laugh.

    Touche. (probably spelled wrong)
  8. Livermore I know from Reminiscences and the other "real" biography, the latter of which I thought was poor.

    Would you care to share your thoughts on Wyckoff, Neill, Dunnigan, and/or Magee? I could read them too but maybe your condensed version might save some time.
  9. marketsurfer

    marketsurfer Sponsor

    it appears that you are seeking to exploit persistent psychological biases in the financial markets. may i suggest to you:

    against the gods--- bernstein

    the predictors-- bass

    education of a speculator-- niederhoffer

    practical speculation--- niederhoffer

    extraordinary popular delusions--- mackay

    beyond greed and fear--- shrefin

    advances in behavioral finance-- thaler

    fooled by randomness--- taleb

    these volumes will be a good start on your journey to an understanding of price.


  10. thankyou dbphoenix and surfer:)
    #10     Mar 29, 2003