In this slowly but continuously updating idea I will be posting an interesting way to analyze charts. It is something old but also new, like duality.
We all know that the stock market continuously grows.
But it doesn't always grow.
For markets lie between worlds.
The reasonable and the unreasonable.
The free choice and the illusion of free choice.
Let me explain...
In micro scale, we seem to believe that the markets follow the "support / resistance" rule.
An (over)simplification necessary for us to comprehend the infinities of the quantum world.
There are lots of stories told in the picture above...
- Prices are chaotic and completely incomprehensible.
- We have to smooth-out to get a clearer picture.
- Is Support / Resistance real or a result of crowd psychology?
- At what point horizontal action "ceases" to exist and "trend" takes over?
Either we call it a "power law" or a Lin-log regression, charts in macro scale seem to trend.
So prices sometimes move with one "law" (support) and sometimes with another (trend).
Do we remember / know what is the foundation of price movement?
A century ago, Wyckoff came up with his theory of accumulation and distribution.
We can safely say that his research was not a result of crowd psychology. He backtested countless price charts, in a period (1920s) when trading was purely psychological, with traders having little experience to modern ideas of "trend", "support" etc.
Just like the new modern technology design principles, ahem aapl, technological information lies inside bubbles. Transparent but distorted. Clear but fuzzy. Duality once again.
Modern trading is a self sustaining loop. The "freedom" of our actions is trapped inside a bubble. Most of us "trade" with similar strategies, and end up in the mass pool of barely-profitable-investors. Unconventional strategists like Hedge Funds must have "alien" technology to overcome such psychological traps.
Back to the main chart:
It is one attempt to bring a new dimension to chart analysis. To merge these two worlds of "support" and "trend". I cannot possibly reach the expertise of massive corporations, but I can bodge something out, and I did.
Price charts can be analyzed with unconventional / proprietary methods to conclude into the chart above. It is a little rough but bear with me. I had to perform complex calculations which I couldn't compile into a Pine Indicator. There is a reason that the top lines are not exactly straight. Their calculations depend on a blend between micro and macro movements.
A couple of interesting charts to conclude the first update of this idea:
BTC Daily
BTC Weekly
A Perfect Fractal.[/I]
I hate bubbles. Mental ones, Soapy ones, Stock ones and UI ones.
- An angry Father Grigori.
We all know that the stock market continuously grows.
But it doesn't always grow.
For markets lie between worlds.
The reasonable and the unreasonable.
The free choice and the illusion of free choice.
Let me explain...
In micro scale, we seem to believe that the markets follow the "support / resistance" rule.
An (over)simplification necessary for us to comprehend the infinities of the quantum world.
There are lots of stories told in the picture above...
- Prices are chaotic and completely incomprehensible.
- We have to smooth-out to get a clearer picture.
- Is Support / Resistance real or a result of crowd psychology?
- At what point horizontal action "ceases" to exist and "trend" takes over?
Either we call it a "power law" or a Lin-log regression, charts in macro scale seem to trend.
So prices sometimes move with one "law" (support) and sometimes with another (trend).
Do we remember / know what is the foundation of price movement?
A century ago, Wyckoff came up with his theory of accumulation and distribution.
We can safely say that his research was not a result of crowd psychology. He backtested countless price charts, in a period (1920s) when trading was purely psychological, with traders having little experience to modern ideas of "trend", "support" etc.
Just like the new modern technology design principles, ahem aapl, technological information lies inside bubbles. Transparent but distorted. Clear but fuzzy. Duality once again.
Modern trading is a self sustaining loop. The "freedom" of our actions is trapped inside a bubble. Most of us "trade" with similar strategies, and end up in the mass pool of barely-profitable-investors. Unconventional strategists like Hedge Funds must have "alien" technology to overcome such psychological traps.
Back to the main chart:
It is one attempt to bring a new dimension to chart analysis. To merge these two worlds of "support" and "trend". I cannot possibly reach the expertise of massive corporations, but I can bodge something out, and I did.
Price charts can be analyzed with unconventional / proprietary methods to conclude into the chart above. It is a little rough but bear with me. I had to perform complex calculations which I couldn't compile into a Pine Indicator. There is a reason that the top lines are not exactly straight. Their calculations depend on a blend between micro and macro movements.
A couple of interesting charts to conclude the first update of this idea:
BTC Daily
BTC Weekly
A Perfect Fractal.[/I]
I hate bubbles. Mental ones, Soapy ones, Stock ones and UI ones.
- An angry Father Grigori.
Uwaga
Ask me for your favorite index to analyze. I am not sure what is popular these days...Zlecenie aktywne
Prices are the border between sellers and buyers.A random line drawn on the map, the current state on the eternal war on terror/profit.
The peak comes when everyone has made profit. Question is:
Who hasn't made profit?
Answer: That's who, the hodlers!
And their amount is large and will take much effort to dwindle.
Uwaga
Kagi is an incredible tool.In low timeframes (e.g. daily) it acts as a low-pass filter. "Noise" is mitigated in a high degree.
In high timeframes (e.g. 3M) is reveals (and widens) information hidden inside tiny wicks. "Sharpness" is significantly increased.
As if... stocks behaved the same way as light itself. Like quantum mechanics. Like the uncertainty principle.
Uwaga
The FED has already started dropping rates, albeit at a conservative pace. Everyone is waiting for rates to drop to zero expecting QE to find new feed. But expectations must be timely and appropriate to the situation.A drop in rates will trigger a massive inflow of fresh cash into bonds (they are inversely correlated).
And guess where all that money will come from...
Stocks!!!
Keep your finger in the trigger, but don't rush. Getting into the stock bubble now will keep you out of the right train. FOMO is not necessarily bad, you just have to know how to use it...
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Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.