Announcement

Collapse
No announcement yet.

Why do prices move?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Why do prices move?

    Interesting excerpt from Japanese Candlestick Techniques by Steve Nison, I found out in cyberspace this morning. Does port to Betfair somewhat, when you think that the markets always react to news, sometimes quite irrationally.



    Soybeans were sharply higher. There was a drought in the Illinois Soybean Belt. And unless it ended soon, there would be a severe shortage of beans. . . . Suddenly a few drops of water slid down a window. "Look," someone shouted, "rain!". More than 500 pairs of eyes shifted to the big windows. . . . Then came a steady trickle which turned into a steady downpour. It was raining in downtown Chicago. Sell. Buy. Buy. Sell. The shouts cascaded from the traders' lips with a roar that matched the thunder outside. And the price of soybeans began to slowly move down. Then the price of soybeans broke like some tropic fever.

    It was pouring in Chicago all right, but no one grows soybeans in Chicago. In the heart of the Soybean Belt, some 300 miles south of Chicago the sky was blue, sunny and very dry. But even if it wasn't raining on the soybean fields it was in the heads of the traders, and that is all that counts. To the market nothing matters unless the market reacts to it. The game is played with the mind and the emotions.

    What's new in version 1.2

  • #2
    Very true. A horse is seen sweating up pre race and moves from 3.5 to 4.3 trainer gives a quick interview 'It's of no concern, it happens regularly and has never affected the horses performance previously' Price goes from 4.3 to 3.1. Eyes and ears obviously cause market reactions but the price movement is often irrational.
    Does that make any sense at all

    Comment


    • #3
      Horses that play up before going in the starting stalls often break the fastest, yet of course their odds drift before the race. Theres no point in laying the horse you wont get paid if it doesnt go in
      Tough times don't last. Tough people do.

      Comment


      • #4
        http://blog.marketdelta.com/?p=905

        Live commentary form the pit of the S&P stock market. How many traders in that pit are shitting themselves and can only watch as the market crashes??? Big price movement caused by algos and pure panic.

        Comment


        • #5
          Originally posted by mikeyb View Post
          http://blog.marketdelta.com/?p=905

          Live commentary form the pit of the S&P stock market. How many traders in that pit are shitting themselves and can only watch as the market crashes??? Big price movement caused by algos and pure panic.
          wow, crazy shit, interesting to see tho

          Comment

          Working...
          X