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. 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