Mathematical Model generates following Market Parameters:
Crowd Reaction - summary
action of the different Market groups (Leaders, Followers,
and Strangers). This curve represents the general
mood of the Crowd (Mass Psychology).
Current Trend - quantitative
value of the current Market Price Motion. There are five types
of trends - Bullish, Small Bullish,
Neutral, Small Bearish and Bearish.
Market Scale (Stability)
- Current Market stability. On
the mathematical model we consider that value at 0.25 and
below is unstable. Range of the Market Stability is from 0.
to 1.0. So maximum Market Stability is 1.0.
Price - Price is whatever
the crowd of traders says it is at any given moment. Prices
reflect reality, as seen by masses of market participants.
Prices are established by crowds of those who make buy and
sell decisions. "Supply and demand curves"
are far removed from the sweaty reality of the market crowd.
Prices are connected to fundamental values in the long run
but are governed by crowned psychology from day to day. Each
price represents the consensus of value among the mass of
market participants at the moment of the trade (Dr. A. Elder).).
In PriceMotion Model price movement is a sum of three curves
(Leaders Way, Followers Motion and Strangers Signature). See
psychological approach.
Price Velocity - first
derivative on the Price Chart. This curve shows us how
fast price moves on the one or another direction.
Market Disturbance -
quantitative characteristic of the simulated
Economical news, Political news, weather ... etc. Negative
disturbance represents bearish news. Positive disturbance
represents Bullish news. Range of changing: from -10 (Strong
Bearish Disturbance) to 10 (Strong Bullish Disturbance) .
Trade Volume- Volume
is the total number of contracts traded during the some period
of time. Volume represents the total trading activity in a
specific period for commodity or financial instrument. "There
are three ways to measure volume: the number of contracts
or shares traded, the number of trades, and the number of
price changes. The first method provides the most accurate
reflection of the market activity." (Dr. A.Elder). Trend
Line - the sum of the three generally accepted trends (Small
Market Oscillations, Followers Trend and Leaders Way). On
the Window(s) we can show all of them or individually, separately
or together. If we will show all of them together we will
see the current price chart.
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