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...
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.
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. best, surfer