You are viewing a single comment's thread from:
RE: A series of Herculean challenges for our boy Bitcoin to ride the hyperwaves
Im no expert by any means but I have always thoughts the prices are based on manipulating human psychology. I suppose creating charts is a form of that and if enough math people follow the math you can use them to predict. But, I've never understood why, and if, the prices follow these models. It seems like a crap shoot to me.
You are half right.
But its not manipulation of human psychology, but understand and predict How humans Will react to certain events.
Prices dont follow Any model. Prices only change when people are buying or selling.
The models that exist around prices (technical analysis) are statistics models based on what happened on the past (what happened in the past when certain numbers matched).
It is kind of a crap shot, but its a probability crap shot.
Some models give you more probability of winning, other are bullshit.
The hard part is to understand wich is wich.
Before following a technical indicator signal (or a "technical analyst") you need to understand what the indicator mean.