Vaerah Vahrokha
Vahrokh Consulting
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Posted - 2013.03.31 08:21:00 -
[62] - Quote
YuuKnow wrote:Financial ultra-noob question VV.
Before I invest a lot of time reading and studying the Pipsology lessons, how does a Forex market apply to Eve? Isn't even just one large single currency? Are Forex principles applicable in the Eve economy?
yk
Forex is potentially more complicated because:
- Each security pair is formed by two markets (one per pair). In Example, EUR/CAD is formed both by EURo and CAnadian Dollar values doing their course. But one of the neat properties of the markets is that it's possible to merge multiple markets prices in one and get a resulting tradable price (see USA indexes).
- It's currently experiencing a "lazy" phase with currencies not doing a lot in terms of momentum.
But if you look at it as just "a market", Forex is just demand and supply, described by tradable bars like every other market.
Markets are ALL covered by price action analysis, because it's really nothing more than about looking at what those markets do and act accordingly. In example, a pin bar, a triangle, a range market are universal, they really describe common market events.
People on the EvE forums don't make the connection between a bar and what it does. I.e. a bearish BEOB? Oh the voodoo!
Oh, wait, a BEOB is just a piece of record that tells us that a certain day, small traders were fooled to buy high (i.e. speculation) and a large trader evilly dumped an huge load of stock on their face.
So, something "abstract" like a BEOB suddenly becomes "lively". A BEOB = tears and so are other patterns.
A range market? That's just the same guys flipping orders or other guys buying up, then selling the stuff shortly after, possibly being helped by "blocking orders" (large stock buy or sell orders). Guess what, those blocking order become recorded as "support / resistance".
So why use the patterns at all, if they could be mapped just to "trivial" day by day market PvP?
They are useful, because the actors PvP IS the market, they collectively repeat their actions again and again following multiple principles at the same time: demand vs supply, greed vs fear, rumor vs facts and so on. Those actions collectively form large scale / long time other "patterns" like triangles, RMs and so on. Due to the fractal nature of the markets those patterns are nothing else than... larger bars! I.e. in EvE 7 days for 1 weekly bar and 4/5 weekly bars form 1 monthly bar, each of them contains the struggle, the PvP and the tears of all the market participants, all of them contain information and knowledge of that information is power.
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