Stock Markets Exposed
stock trading with mathematics?
Guys... we use dif. method in stock trading. some text book and website claim that mathematics is a perfect tool to select a right scrip and earn good money. I put this question for get to know all ur valuable view and the question raise in my mind is.... For a stock move based on demand and supply, so that how a mathematical formula identify a stock price movement? is any of you try that and get any meaningful result... valuable comment helps many stock traders to earn good sum. thanks a lot for join with my question.
Public Comments
- Math is the foundation for technical analysis. Formulas and scripts already exist to create indicators that the trader can use to make buy/sell decisions. On the following chart (selected at random), http://stockcharts.com/h-sc/ui?s=ATVI&p=D&yr=0&mn=9&dy=0&id=p88351166551&a=92166071&listNum=14 I show MACD, Stochastics, Williams %R, RSI and a few others. It's mathematical equations that generate the data for those charts. For example, an explanation of how RSI is generated can be found at: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:relative_strength_in I suppose you could write a script that takes a number of these indicators and when 4 of them line up the right way, it tells you to buy or sell but I wouldn't trust it. The key to technical analysis is interpretation of those indicators and how they relate to the motivation (in general) of buyers and sellers in the market. It's more art than science
