Each day millions of people eye the movement of stocks and other equities, their hopes pinned on accurate wagering that hits the bulls eye. Could the Average Joe actually game such a vast system of financial assets?
It does seem improbable, but that’s not the case for a mathematician, because probabilities and patterns do yield valuable clues as to where the markets are headed. As it turns out, graphing up and down movements can be the key to increasing an investor’s predictive capabilities.
You don’t have to follow the herd to glean the signals that portend significant changes in the markets. All you really have to do is to become more familiar with the concept of wave science.
Just like the oceanic waves, the collective decisions of many investors charted on a graph reveals waves of sentiment. And we all know that Wall Street is filled to the brim with emotion. Just consider all those iconic images of stock traders wildly waving their arms while they shout out buy-and-sell orders.
It’s actually much more beneficial for an investor to focus on patterns and not the day-to-day news bursts, which when charted appear as waves dipping and cresting.
Analyzing wave patterns in trading activity reveals the collective sentiments of millions of people. That information is much more valuable than the shorter view. Consider those aggregated movements as a large animal that reacts with excitement, fear or every half century or so, explodes with an intense emotional frenzy.
Tap that rich vein of information to rise above the herd.