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

To: Arthur Tang who wrote (1167)	10/4/2000 5:26:44 PM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

If you seen one chart, you have seen them all? I used to flip over all the stock charts in Value line reports. That is why I believed in the old market making technique of 300% gains each year for good stocks. Many charts are similar. Today we have the computing power to generate functions(an equation that fits a curve). If we plug in the variables, we can predict the price and volume 6 month or a year later; based on one large trade which gaps up 2 points. This could be derived from multiple charts in existence. An averaging equation, by substituting the variables it can fit any existing curves. So by one extraordinary trade data, a curve of 6 month to one year can be generated. In fact I can generate a curve for DELL, or AOL just by eyeballing up to 2 years duration. But to write the equation may take me months. Computer may do it in a few minutes after you write the software. What that equation tells us, is the way market makers make money on trading and maintaining a market. Occasionally, some specialists or market makers do go into bankruptcy, due to the fact that "big fish eats small fish" becomes a problem. But that is another story. Can T/A be improved, I should say so. All the present T/A tools are not capable of generating a composite curve of price and volume in the future based on a single event.