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Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (1162)	9/6/2000 6:50:22 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

Using Silicon Investor charting with all the trimmings, you can really eyeball technical analysis? The only trouble is that the most important part of drawing the trend lines is left for you to do. Support and resistance level is also left out. Otherwise you can get quite a few charts up to 1 minute resolution. While I like to think 1 minute volume could tell me about whether the bar chart truly represent the buy(blue) and sell(red) orders; you only have to look at the 5 minute chart to know the gross inaccuracies. However for wall flower stocks, the trades are few enough to have true representations of buy and sell orders. I invest in wall flowers, so I am in luck. Compare the volume charts(any time interval) with other charts and you can see the futility of all the other charts to help you invest. So, we have to value the data from volume which also may tell us whether we have overbought or oversold. Which relates to market makers' offers in real time quotes(level2 only; not nasdaq sequential real time quotes which is brokerage's last trade). On the price gyrations in the trend during intraday activities; only level2 quotes can tell which market maker made the trade. We do not have that kind of data from Silicon Investor yet. If you use some of the daytrading firms of online brokerages who offer level2 trading; you may be able to analyze which market maker dominates and is the quote leader. Whether this market maker shorts or accumulates will predict the price quotations going immediately forward. However, if the online market makers handle 25 stocks each person; many quotes are merely printed and any move would happen only if the dynamics caught them unprepared. This is evidenced in many stocks that hardly have moves during the day. The attentions of the 680 firms of market makers are all focused on some other hot stocks. The old days of market makers moving the stock to get investors' interest thus maintaining a market is long gone. On the other hand, if sectors are in any kind of story, then the whole sector moves; it is still traditional market making. So, this leads to the complete explanation of how the market broadens. If the market is selective, then it is probably rumors or news restricted to an individual company. Is this microTA in a nutshell? Maybe conprehensive enough to have some advantage in investing money in equities.