Reply
More than 10 Vouchers
 
Thread Tools
  #165  
Old Jan 18, 2011 9:38pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Latent volume as DS explains it is similar to classic models of static supply and demand curves in microeconomics, where supply is proportional to price while demand is inversely proportional to price. This is where the fundies are trying to buy low and sell high.

I say static because these curves can also shift, in which case the situation is reversed. Price is directly proportional to the SHIFT in the demand curve and indirectly proportional to the SHIFT in the supply curve. This is where the trend followers come in. Panic sellers dump more as price falls, and bandwagon buyers pile on as price rises.

This second phenomenon doesn't seem to be reflected in your model DS, unless it's just supposed to be the red tech orders?
__________________
My 10-year Carry Trade Plan
Reply With Quote
Reply

2 Traders Viewing This Thread (1 member)
InvisibleMore than 10 Vouchers
Thread Tools


Similar Threads
Thread Thread Starter Forum Replies Last Post
order flow Statistics on FF Isotonic Trading Discussion 40 Jun 6, 2011 11:28am
Order Flow ssteiner87 Trading Discussion 25 Feb 8, 2011 9:21pm
365 Trade: Finding the Flow Sifu Rookie Discussion 11 Mar 25, 2009 8:44pm
order flow Ricardo. Rookie Discussion 5 Aug 29, 2008 2:54pm
Order flow randomlight Trading Discussion 7 Feb 19, 2007 10:42am