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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (1159)	8/11/2000 9:47:37 AM
From: Arthur Tang	Read Replies (1) of 1471

Why is TA only a record of the market maker who offered buy and sell quotations? Contrary to most technicians, the quotations are related to the inventory the market makers hold. Like any business, the quotations determine whether you are competitive on the market. When the quotation pulls back, investor like to sell to avoid losing money. When the quotations have a nice move, investors get greedy and try to buy all they can. So, the momentum of waves of investors are psychologically motivated by price changes. TA becomes difficult to predict when you do not have information of market makers' inventory data. Available stock or shorts information is not posted anywhere. Along comes level2 trading data streaming. Any time the quotes change by any market maker, all of a sudden you know why they offer a change of quotes. That knowledge properly applied, helps you determine the trend for the next few minutes. Money can be made, if you do day trading. Long term investors also will benefit from the interpreted shorts data to see the action on TA. TA without waiting for shorts to be published on the 15th of the month, can be interpreted on the fly thru level2 quotation changes.

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