Open trading account 
I read this interesting post on web and found it intriguing, I hope traders here would find it useful.
No, the market is anything but random. If you study the correct dimensions of market data (not all market data reveals the same things about repeatability), you will undoubtedly find that markets (especially the currency markets) are not structurally random in much that same way that you will find the structure of the universe to be fully randomized in its distribution of matter.
This brings up an important point that most traders never get around to asking themselves: What is a pattern? In order to see that the market is indeed not random, one has to first be able to define a "pattern." Patterns come in manner of configuration and their distribution is a dead give-a-way that repeatability is normative within the market itself.
Thus, the real question is not so much, is the market random - rather the top four (4) fundamental questions should be:
- What are the structural elements of the pattern being observed and how do I observe and qualify them?
- How uniformly distributed is the pattern through the Arrow of Time (how stable is the pattern through Time)?
- What is the historicity in the magnitude of the potential profitability of the pattern?
- What is the historicity of average maximum risk associated with the pattern?
As you can see, a real market pattern does have characteristics that are measurable and definable. However, patterns can often times be as difficult to find as symptoms of an ill running car. Without the proper diagnostic tools it can be difficult to pin point quality patterns that can be relied upon to a degree of unique certainty, making the dimensions of data that you analyze even more important.
Sure, quality patterns do exist, but they don't typically sprout legs and leap into your lap. You have to investigate the market, build tools of differential analysis, study good data dimensions that lead to quality discoveries and then qualify the integrity of the pattern for its true profit potential - always using the historicity of the data as the pivot point for reliability and trust. After that, you can then build a trading model (some people call them trading systems) predicated upon such research that complies with your own personal goals and objectives.
No, the market is anything but random. If you study the correct dimensions of market data (not all market data reveals the same things about repeatability), you will undoubtedly find that markets (especially the currency markets) are not structurally random in much that same way that you will find the structure of the universe to be fully randomized in its distribution of matter.
This brings up an important point that most traders never get around to asking themselves: What is a pattern? In order to see that the market is indeed not random, one has to first be able to define a "pattern." Patterns come in manner of configuration and their distribution is a dead give-a-way that repeatability is normative within the market itself.
Thus, the real question is not so much, is the market random - rather the top four (4) fundamental questions should be:
- What are the structural elements of the pattern being observed and how do I observe and qualify them?
- How uniformly distributed is the pattern through the Arrow of Time (how stable is the pattern through Time)?
- What is the historicity in the magnitude of the potential profitability of the pattern?
- What is the historicity of average maximum risk associated with the pattern?
As you can see, a real market pattern does have characteristics that are measurable and definable. However, patterns can often times be as difficult to find as symptoms of an ill running car. Without the proper diagnostic tools it can be difficult to pin point quality patterns that can be relied upon to a degree of unique certainty, making the dimensions of data that you analyze even more important.
Sure, quality patterns do exist, but they don't typically sprout legs and leap into your lap. You have to investigate the market, build tools of differential analysis, study good data dimensions that lead to quality discoveries and then qualify the integrity of the pattern for its true profit potential - always using the historicity of the data as the pivot point for reliability and trust. After that, you can then build a trading model (some people call them trading systems) predicated upon such research that complies with your own personal goals and objectives.
