Thursday, July 15, 2010

Hidden Market

Wall Street analysts insist that is the only possible reasonable method to measure the price movement, born in their narrow view of the market. Based on fundamental analysis, they assume the rationality of the market, where only the balance sheet determines the value of each share. When the price of daring to rise above this hidden calculus, they stick to it a negative label overvalued, hoping to derail it. Conversely, when their followers will not Nabavi price of cheap paper, it will certainly be an undervalued commodity.
These so-called experts miss one of the great truths of the market game. Regardless of our beliefs, we all - just a flea on the back of an elephant. No single discipline can not hope to cover all the myriad forces that cause each increment of price movement, its direction and momentum. In fact, the true failure of fundamental analysis is precisely from such a lack of required input data.
Supporters of technical analysis has no place in this pleasant world, devoid of the twin giants of greed and fear. So the fundamental analysts often avoid studying price charts and include it in the category of voodoo and witchcraft. Although TECHNICAL EXPERTISE gradually captures the mentality of Wall Street, he will always be less beaten path. But his phenomenal strength accurately predict market movement ensures its longevity.
The vast majority of destructive and favorable market power remains hidden from traders and investors. Initiates safely manage the news to protect the position. Analysts are pushing shares, so that their trading departments can unload the equipment. Operational failures are part of magic and evaporate. As a result, any subset of this market information universe is of limited value because they do not stand a single exam seriously.
Analysis of the models begins with the simple  observation that all market activity is reflected in the fractal properties of price and volume. When folded together in time of these small pieces of information creates a profound visual presentation: showing both current and past results of all the interactions of infinite market forces sighted eyes of all participants.
As you may already realize, this complex is also known as the price chart. And the model, which he often weave contain almost mystical power of price predictions.
Traces changes Models provide the keys to the door of "smart money" on the eve of important events. 25th June, a software developer Parametric Technology broke up a 3-month channel to the new absolute maximum. Rather than continue with this powerful breakthrough, he immediately turned around, falling without any news. 5 days later, PMTC issued a warning that earnings will be significantly below expectations.

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