I’m no expert but can have a go at helping out. In regards to...

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slick

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21/03/24

19:54

Post #: 73002004
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Originally posted by longreach: ↑

Even though I'm old and hate the detail, I'm certainly of the view that the devil is in the detail with anything, including share price movements.
So my question is for someone who may have personal experience with the development of Bot behaviour, and specifically the algorithm methodology - does anyone know if these algorithms incorporate the various established principles commonly used for TA? For example, does the Bot behaviour aim to develop certain share price action that complies with general expectations for Bollinger Bands, RSI's, etc etc?

In the case of CU6 there was about 16 straight weeks from late October 2023 where there was a fantastic weekly chart, until early February 2024 from where the chart has behaved far more erratically - I've wondered whether this change in behaviour is more reflective of the "weight" of the increased valuation (I know that's got nothing to do with TA), or whether the impact is related to certain Bot behaviour, perhaps related to PA attempting to comply with (certain?) common TA principles, or other?

Yesterday's trading was an outlier, most probably caused by the market realisation of what potentially CU6 could be worth, but a day later its been forced down perhaps based more on TA.

In fact over the last month there have been a couple of fairly significant 1 day drops, and perhaps it's primed to follow that lead in the next day or so - but that's OK because I'm happy (and I'm sure others are similarly) to slowly add more on any reversal.

Any thoughts?

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I’m no expert but can have a go at helping out.

In regards to the bot trading (algorithmic trading), obviously these systems are used to either gain a large position or distribute a large position without moving the SP too far therefore they may be in action for days/ weeks to achieve that goal. They are cleverly disguised as to not give out any clues as to their intention. The only way to get an idea is to follow the tape over many hours to identify the bots patterns. ( but who wants to do that? )

But what you also have are MM’s ( market makers) that add liquidity for buyers/ sellers. Below is a link to read up on rather than me try and explain it.
https://www.investopedia.com/terms/m/marketmaker.asp

So the PA has a lot going on, insto’s involved in this have very large and complex trading desks and yes TA is a very important tool to them but it is used in a different way to trading groups or individuals.
Ive always liked this below clip as an example of an active desk.

There are many very good YouTube vids on this topic or seminars you can attend that go into the fine details but I’ve got to say it’s as boring as batshite unless you’re very passionate about it.

Cheers.

Last edited by slick: 21/03/24

CU6 Price at posting: $2.95 Sentiment: None Disclosure: Not Held
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