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Politics : The Left Wing Porch -- Ignore unavailable to you. Want to Upgrade?

To: YlangYlangBreeze who wrote (1957)	12/23/2000 9:50:39 PM
From: hobo	Read Replies (1) \| Respond to of 6089

So who is doing the manipulation? Is it intentional, or unconscious as the options are closed that are more in/out of the money? a manipulation would have to be intentional. i have never heard of an unconscious manipulation --except the ones in our own minds-- i.e. conspiracy theorist come to mind. (gg) i will say this about any form of "technical analysis". there are so many people following that it then becomes some sort of "self fulfilling prophecy." i would hardly equate it to a prophecy by Michele de Nostredame. but if you want to have some fun reading about Nostredame (Nostradamus) go here: activemind.com or a real cookie version of same: web.tusco.net you can also go to "Conspiracy Central" conspiracy-central.com however i doubt you will find a section on "the secret": Conspirators of the Option Trading World Using MaxPain aka the Montana Pick Up Truck with the Empty Gun Rack (in off hunting season), Supremacist Kookheads. as for the theory behind MaxPain, i think that JXM gave us this link: ez-pnf.com MaxPain for SUNW Dec/00 ez-pnf.com now... something that i use and may halp you understand the influence that moving averages and standard deviations may have on price movements read this, which relates to bollinger bands. inmo the use of bollinger bands is quite important if one is to use options as part of an investing/speculating strategy. bollingerbands.com Bollinger Bands are plotted two standard deviations above and below a 20-day simple moving average. The data used to calculate the standard deviation are the same data as those used for the simple moving average. In essence, you are using moving standard deviations to plot bands around a moving average. The time frame for the calculations is such that it is descriptive of the intermediate-term trend. bollingerbands.com i have found that stocks (or anything that is tradabel), have their own individual "rhythms". the bb assist you in plotting such rythms. if you become familiar with a particular stock and assuming you can read the charts correctly, you will succeed (in most cases), trading with options. in the an ideal world you want to sell puts (or but calls) when the stock has been riding the lower band, AND a sign to "revert to its moving average" is given. likewise, in the same ideal world you want to sell calls (or buy puts) when the price has been riding the upper band AND an inminent sign that the orice will "revert back to its moving average". i also use other indicators in conjunction with the bb and of course i pay attention to the "psychology" of the mannic dep... err, no i meant the market participants. not really a science, more of an art. finally, you may want to read a bit on Leonardo Pisano Fibonacci an Italian mathematician that observed certain frequencies in series of numbers. these numbers in t/a are known as Fibonacci support/resistance retracement points. Leonardo Fibonacci: mcs.surrey.ac.uk Fibonacci Retracement (support/resistance) as it applies to t/a daytradersmentor.com stocks.about.com daytrading.about.com p.s. i am no mathematician, i just read the instruction booklet for 't/a for simpletons' (g)