TECHNICAL ANALYSIS
In "TECHNICAL ANALYSIS" we compehend all of what concern handling, reading, and processing market data in order to take trading decisions.
It 'an area that has seen tremendous developments especially since we have moved from the trading pits to electronic platforms, where an increasing amount of data become available to the public in real time to be used and interpreted.
The fundamental analysis, the one used to take trading decisions based on conjunctural/economic analysis, corporate balance sheet, earnings etc.., is not considered at all by the intraday traders who are the ones who make the market in the short tterm; yes it's important to know the economic environment, be aware of news releases, earnings and all events who can affect the market, but this is more for being careful of sudden impacts that they can have on the market than to make trading decisions.
Researces and insider informations are far beyond the possibility of the large public that's why we have to assume that we cannot eliminate the information risk.
The information risk is the risk that we assume entering the market without having an adequate amount of information (that others might have) and before the market has already moved in the desired direction
The price risk is on the other end the risk that we do not want and definitely cannot take; minimizing the price risk means getting in at best possible price in relation to our trading hypothesis , being able to verify it at the lowest possible cost.
Both of these concepts will be examined more in depth as they represent a key element of our approach to trading and a direct consequence of using the Auction Market Theory concepts.
The fundamental analysis, the one used to take trading decisions based on conjunctural/economic analysis, corporate balance sheet, earnings etc.., is not considered at all by the intraday traders who are the ones who make the market in the short tterm; yes it's important to know the economic environment, be aware of news releases, earnings and all events who can affect the market, but this is more for being careful of sudden impacts that they can have on the market than to make trading decisions.
Researces and insider informations are far beyond the possibility of the large public that's why we have to assume that we cannot eliminate the information risk.
The information risk is the risk that we assume entering the market without having an adequate amount of information (that others might have) and before the market has already moved in the desired direction
The price risk is on the other end the risk that we do not want and definitely cannot take; minimizing the price risk means getting in at best possible price in relation to our trading hypothesis , being able to verify it at the lowest possible cost.
Both of these concepts will be examined more in depth as they represent a key element of our approach to trading and a direct consequence of using the Auction Market Theory concepts.
Old school Technical analysis, the one based solely on studies and manipulations of price (indicators and oscillators) was definitely relevant in the past, but today in our opinion is an incomplete model to make trading decisions; useful contributions also from the past but more relevant than ever are represented by the concepts of Market Profile that today we use most in terms of Volume Profile; thanks to increasingly advanced trading platforms, chartings and datafeed, the valid concepts proposed by Steidlmayer and Dalton on AMT and Market Profile can be now fully used and represent a major contribution to daily operations, enabling us to make trading decisions based on information generated by the market itself (MGI market generated informations).
Price action analysis is important, but it's better if put together with the AMT approach (Auction Market Theory), the Volume Profile study as well as the Order Flow reading through the use of the Delta and the Footprint.
Price action, Volume Profile, and Order Flow, allow you to see the market in more dimensions rather than watch it in the only one perspective represented by the price.
These are all tools and concepts we use in our daily trading on the main US and European Futures markets, and this is the direction in which we point our research which is basically statistically oriented.
Price action analysis is important, but it's better if put together with the AMT approach (Auction Market Theory), the Volume Profile study as well as the Order Flow reading through the use of the Delta and the Footprint.
Price action, Volume Profile, and Order Flow, allow you to see the market in more dimensions rather than watch it in the only one perspective represented by the price.
These are all tools and concepts we use in our daily trading on the main US and European Futures markets, and this is the direction in which we point our research which is basically statistically oriented.