|
PureBytes Links
Trading Reference Links
|
Here's my opinion on random in the market
Yes, there is obviously random movement of price action, by the all too many
different
players in the market, thats hard to define mathematically or put into a
computer
program. The catch is that, that random movement is like a ball still CONTAINED
inside a box, that is, if you can define that box early on, you can make
money. Since the movement is inside it, you go long when the price movement
reach the floor of the box,
movement in the middle of the box is the random movement,what we are catching
is
the extremes in the side s of the box and when the activities of that random
ball reached on top of the box, you either planto liquidate your position or
thinking of initiating a short position, still all these is just high
probability play. and yes, sometimes the box can become bigger one too, but not
often that you can't make money from the original box
What we all technicians are doing in our individual way, is just a form of
betting on a high probability game.
Dtrader wrote:
> RE: MOMENTUM
>
> Does this say that momentum does not lead random walk and therefore price
> is a random walk.?
>
|