Well, here's a Sunday topic for you.
Technical Analysis is based on the concept of supply and demand, but FTSE is merely an index that has no supply and demand of its own. So how can TA be applied to FTSE with any confidence?
good debating
jon
Agreed Jon, extremely 'iffy' if you're trying to scalp the index using a SB platform. But, for a swing trader using E0D charts and a reasonably wide stop, I would have thought it would be okay. That said, it's yonks since I traded that way and I wasn't very good at it when I did!. . . mind you, when the supply and demand in the constituents of the index can vary by extreme degrees it seems that to place reliance on what is in effect the aggregate shown up by the index is a touch "iffy" when dealing with precise numbers - eg: "there's support at 5174" or whatever.
Hi 0007,TA can also be based on analysis of cycles which, when present, apparent and deducible, can be used to trade successfully short & long term. In this respect FTSE is little different to any other instrument.
FTSE is merely an index that has no supply and demand of its own. So how can TA be applied to FTSE with any confidence?
good debating
jon
I disagree with this. If you can buy or sell the index or the futures then there certainly is supply and demand. the FTSE or any market index is not just made up of its components price...it works both ways. If a very large player buys or sells thousands of index contracts at a time then the price of the components will move to reflect the supply or demand of the index.
Peter
Roth',in most cases the ES will move the S&P individual stocks. So the supply and demand of the ES will set the supply and demand of the underlying stocks in the S&P500.
Hi 0007,
Are you referring to Hurst or some other form of cycle analysis? Every once in a while I read a post such as yours and think I ought to investigate it and quickly reach the conclusion that I'm in a cul-de-sac. It would be great to get an insight from someone who uses cycle successfully to provide some pointers with examples. Hint, hint!
Tim.
Aha, an important word and, I suspect, therein lies the difference in our respective opinions!i disagree. the ES trades about 100billion a day in notional value.
Aha, an important word and, I suspect, therein lies the difference in our respective opinions!