October 20, 2016
Trades & Tutorials
By Geoff Bysshe
This is not exclusive to the big banks, you can do this too…
Big Wall Street trading institutions are known to hire top notch ‘rocket scientist’ to figure out mathematical formulas based on physics that can predict the market. In fact, many are quite successful at using math and physics to profit from the market.
It makes sense that using concepts you’d learn in physics class would assist in explaining the market’s movements, because…
You don’t have to have a PhD in math to observe the Newton’s first law of motion, “an object (the market) in motion tends to stay in motion…”.
But any trader with experience in the market will agree that the market’s trends are not always as obvious as Newton’s first law would suggest!
One reason trends regularly surprise traders is that there are more than the obvious ‘trends’ of absolute price movement at work in market.
In this video I show you how a measure of momentum can highlight when the price action you see on the chart has a very powerful force working against it. This can give you powerful insight into market turning points before they occur.
It can also confirm which trends are likely to continue as Newton’s first law of motion would suggest, so that you can know which trend to hold on to and which to exit.
If you'll like to learn more about the "Real Motion" indicators in this video tap here: