DislikedHers's is an article that helps others in the distinction between MP & AMT...................................... CISCO 37 Years of Excellence in Auction Market Research CISCO Futures 1-303-306-1521 1-800 800 7227 Fax 1-303-306-1572 http://www.cisco-futures.com [email protected] Dialogue on the Two Systems: Holism and Objectivism Market Profile versus Value Based Analysis Donald L. Jones Copyright CISCO Futures 2007 Subscribers to the CISCO Short Course for daytraders are permitted a 15 minute question session per week. This dialogue...Ignored
Thank you, Mzvega, for this post. It is a great one. But what does it change?
Gaussian statistics is not valid for the market description unless the market is balanced. Well, let it be so.
@Cisco-futures “Auction Market Value Theory is, we believe, the first comprehensive theory of auction markets. Economists for long have held to the Sharpe-Markowitz Gaussian distribution theory for equities (Capital Market Theory, or CAPM). Their idea that the market was an equilibrium structure has proved wrong.”
Well, let it be so... once again. I have lately studied CAPM. It really uses statistical data. If "the market is not in an equilibrium", does it mean that CAPM is wrong? I think, it does not. Why? Because it has been working well enough for those purposes it was discovered. Do we have an alternative solution for these purposes? No, we do not. So we shall be using CAPM then.
@"If the price-volume curve is not bell shaped, obviously it is incorrect to apply gaussian statistical analyses."
It is not valid scientifically. OK. However what does it change? What should we use instead of this? I do not know. It is still working. It will be... Why? Because the market is not "Science-in-use" - the market is people doing their irrational desicions.
As to an advice, it is completely valid. The only thing I understood trading was that there were the only two day types - balanced or imbalanced (trending or non trending) - as soon as we have discovered it before real market actions, it gives us competitive advantages afterwards.
Hunting High and Low