Thank you @telamelo, going to check out that channel now.
With you on that Delta. The masters of that kind of charting are nodding and smiling if they see what you wrote. I am just a grommet but know that the core concept is about eventual equilibrium above all else. Thus, the bell curve three-dimensional aspect and value areas for profile. You can see that balance in other charts too, as we trade extension or excessive moves from sideways trade and back to consolidation. The tough part is defining what makes for too much extension/imbalance on a given time frame, but it is like anything else in life -- you watch something long enough, you may start to notice the beginning of meaningful deviations as they happen. As for the broad market picture, there is a push and pull and temporary excesses in the derivatives markets we've created in the spirit of efficiency. Farmers and jewelry makers can lock in prices on grains and precious metals, while speculators and quarantined students can use their smartphones to…oh…never mind.
For sure, systems become a self-sustaining thing in themselves. The legal system is an example of something complicated that is ultimately about simple, ancient, common sense rules for behavior. As for stocks, I don't know whether to begrudge this glorified fps game (with limited respawns for most of us) we call the market or just happily go with it. Well, it is kind of too late to go back after we've lost so many brain cells from the stress of learning how to keep our powder dry or keep any powder at all. What a rush when you realize you can keep your account stable over time.
The whole thing is sort of intense but, as you say, it is of our own desire and design. We won't stop until we drop. We could be accused of complicating things, so it's good there are many methods of trading to accommodate us through whatever we choose. As @golden6 says, sometimes you have to take special measures to keep from getting overwhelmed with details. I think she goes to the garden sometimes and that is always good for a reset.
As for the temporary imbalances, they happen in those modern novelties you speak of. Take the rapid deploy of information (or misinformation/disinformation) consumed by the collective conscience via instantaneous communication and social media. We are here trying to right ourselves after fast evolving tools for communication catalyzed some nasty political events. And what of the monetary and fiscal policy structure @Dazedandconfused was writing about above. Central banks work overtime to counterbalance our inequities and excesses to a level that has translating economists resembling street mimes or shell game operators. It is always fun to hear retired, hardscrabble no-nonsense ES and bond traders comment on the government policy and robot trading. Like…the blood and guts open outcry dudes whose hair fell out at 20 from stress. It is colorful. Can we return - of our own volition - to equilibrium before hurting ourselves?
I'm actually a slow learner about balance and still working on how to avoid myopia. There is no end to that journey. If we can give our overwrought minds time to reset between trades or shifts in market mood, we will survive. Yeah, easier said. Lately been doing what @ammie was talking about with shorter trades because of all these opposing market forces. It can be hard to hold a swing trade when the Fed is fighting nature and casual participants are inflating iv on stocks just because they can. Thank you for reading and your thoughtful replies. Hope you all are having a safe and relaxing weekend. Your thoughts are appreciated.
