The Bandwagon Theory Illustrated in Modern Markets
Hey reader, FibStalker here… 🙂
Do you want to get a fresh perspective on the markets and get to think of new ways to model market price in effective ways?
Do you want to look at an approach that helps you ‘doing things differently’ in the markets and outperform the 95% of traders who consistently lose money?
When I started trading in 2001 I learned to interpret market action using traditional technical analysis. That is what I had available at the time… tens of books on how you can use indicators to model a trading plan (e.g. entry, stop, exits and size, at the very least)
That is, using methods that model the market using functions of price…. the common indicators.
But do professional traders and algorithmic trading (by the way, nowadays Algos control up to 80% of volume in some markets) model market action as a function of price?
No, they don’t.
The reality may surprise you, but “professional do not trade price, they trade people’s psychology” (cit. Van Tharp, one of my mentors).
What does that mean?
Their methods are not a function of price, like in technical indicators, but a function of market psychology.
Yeah, yeah, but what is market psychology?
Think of it as the aggregate response of average traders, taken as a group, to market price development…
So, do you want to know how market psychology shows up on charts and – most importantly – how you can take advantage of that?
If that interests you and you want to start doing something differently in your trading and get into the elite 5% of successful traders, don’t miss the recording of today’s Webinar I have offered at FXStreet.com.
All the information and the link to the recording are below:
Summary: “I will discuss a powerful allegory for markets behavior, worth alone months, if not years, of trading exposure (not an overstatement). It can save a lot of time, money and mental pain. I will illustrate the Theory on the EUR/USD and other current charts, explain how it applies to my tradingand how it relates to Algos trading in Modern Markets.”
As there was not time for the closing and the takeaways, I have also recorded a brief video in which I have commented for my subscribers on the important points to take home.
Let me know what you think about it. Reply to this email and send me your comments.
In my research and practical trading I study the effects on price of classes of algorithms in high volume markets. If you are interested in the very innovative, effective, resulting trading edge check my work at www.fibstalker.com.
WHO IS GIUSEPPE BASILE?
Giuseppe is a Certified Market Technician and swing trader, IFTA and SIAT associate. Holds a B.Sc. in Computer Engineering and a MA in Finance. In the markets since 2001, became trader and mentor in 2007. Studied with several traders in UK, Europe and US, adding over 7,000 hours of screen time between 2009 and 2013 alone. In 2012 launched FibStalker, a blog specializing in forex, futures and stocks trading, where he also runs a free newsletter and publishes daily videos with actual setups and complete trading plans.
Giuseppe’s unique method attempts to spotting footprints of Program Trading, a powerful class of algos that governs the markets. Giuseppe is a rigorous researcher with several published papers about money management, automated trading, HFT and innovative timing and trading methods.