Sluggish Market & Ant Theory

[SOCRATES]

You see Rudeboy I told you so.

 

[SOCRATES]

Rude



Do I use this in a technical sense.............no, I do not use technicals at all.
Does an overbought / sold measurement indicate an "inefficient" price.

This really depends on how you are measuring the market, viz. how is the indicator that you are using measure.

2 examples;
Bollinger Bands utilise standard deviations, a statistical construct ( mathematical ), therefore yes, it is trying to measure "inefficiency" in a mathematical context & construct.

TRIN....which measures the # of advancing issues against the # of declining issues, is an interesting one, as logically you should not infer a measurement of "inefficiency" to this measurement.

However, that is almost exactly how it is used.
Now the difference, is in their application.................in THEORY, Bollinger Bands as a statistical measurement should not require a stoploss.

Where, TRIN, as a purely arithematical construct would require a stoploss. However, what you would find is that if TRIN was highly negative, then the fall ( or oversold trigger ) would most likely be picked up by a bollinger band as a STATISTICALLY significant change, and thus not require a stoploss.

As you can see, your question is not easily answered, and there will be many different interpretations, and on any given day could be valid.

Which is why at the end of the day, the shorter the timeframe you trade, the less any outside modelling will help, the more you have to fly by the seat of your pants, and intuition becomes vitally important, as interpretation of charts, indicators, volume, whatever becomes extremely fluid, and open to manipulation.

The longer the timeframe, the more accurate modelling becomes, as the accuracy required is less.

cheers d998

ducatti, Bollinger Bands on charts are like stabilisers on kiddies' bikes. They really are for absolute beginners. Of course his question is not easily answered. You ought not to put yourself in predicaments like these and try to deal with topics you know little or nothing about.

The same goes for the last 6 lines of your post above. Equally irrelevant. But of course again, you persist in force fitting these concepts to your own frame of reference, which, unsurprisingly yet again, is the wrong one.

Ah ! And as a footnote that I forgot to add, yes, "intuition". Intuition is the result of firmly ingrained experience, deep knowledge resulting in mastery or "expertise".
According to your frame of reference you are not entitled to make such comments.
You would not recognise expertise if you were priviledged enough to witness it in any event.
You would say it is the seat of the pants, or ants, or crystal ball gazing or some other nonsense as usual.

Or even a gambler's luck !

 

[ducati998]

Hey............Dimbo

You know what they say........................

Money talks............bull**** walks.
Show me the MONEY...........BABY

Cheers d998

 

[RUDEBOY]

That's fine Ducatti. Can FA alone tell you about price inefficiency?

 

[SOCRATES]

Hey............Dimbo

You know what they say........................

Money talks............bull**** walks.
Show me the MONEY...........BABY

Cheers d998

You are the exception, in your case it happens to be the opposite.

 

[ducati998]

RUDE

Absolutely yes.
No question.

Cheers d998..............welcome to the true darkside!

 

[SOCRATES]

I am also interested to see what you are going to reply to Rudeboy in response to his post above number 65, because, unless you can perform a miracle, I firmly believe you have been checkmated again.

 

[RUDEBOY]

Ducatti, do you EVER use charts?

 

[SOCRATES]

RUDE

Absolutely yes.
No question.

Cheers d998..............welcome to the true darkside!

Yes, that is why the results you get are the opposite to the ones you expect with all your calculations, expectations, dictums and decrees. Pitiful, it is, dire !

 

[SOCRATES]

And do you purport to understand charts ducatti ? Go on tell us....

 

[ducati998]

RUDE

Never.



What was that gust of hot air........................did someone just fart ?

 

[SOCRATES]

Do you draw your own, by hand ?
Have you ever ?
What about indicators, are you an indicator aficionado ?
If a chart was handed to you upside down, could you tell the difference ?

 

[RUDEBOY]

Ducatti, i believe you. Do you believe yourself?

 

[SOCRATES]

RUDE

Never.



What was that gust of hot air........................did someone just fart ?

You see, what a waste of time this is ?

I'm off, tata. To put the kettle on.

By the way, the Xmas party...it is not on....not if you are going to behave like this additionally to trying to drill my head in. Nope.

 

[RUDEBOY]

Ducatti, do you 'buy' more than you 'sell'?

 

[SOCRATES]

And do you buy or sell with limits or do you just blunder in ?

 

[RUDEBOY]

Ducatti, does your FA rely on short term, mid term or long term analysis?

 

[LION63]

Rudeboy,

Judging from the posts that Ducati makes, it would be fair to assume that he buys more than he sells. On the other hand, I sell more than I buy and I do not use charts for entry or exit as they are of no relevance to a TRUE fundamental trader.

 

[RUDEBOY]

LION63, that's fair enough. But try not to swing Ducatti's answer.

 

[SOCRATES]

Rudeboy,

Judging from the posts that Ducati makes, it would be fair to assume that he buys more than he sells. On the other hand, I sell more than I buy and I do not use charts for entry or exit as they are of no relevance to a TRUE fundamental trader.

Good evening Sir, judging from the posts that ducatti makes and the content therein, the conclusions that you arrive at are totally different to the ones arrived at by yours truly, there's a good gentleman...

Kind Regards As Usual.