Help with charts and technical aspects of PMs

zrlevin

Hi Everyone,

So I've been into PMs for a few years now....but I still only know the general picture. I guess this is OK, since I only buy physical and intend to hold for a long time.

I am interested, though, in the technical, specific aspects of PMs; what causes them to fluctuate day to day. I don't know the basics, though, so threads and sites about it don't make sense to me. Could someone take a few minutes and explain the deeper specifics to me?

TL;DR - What the hell is going on in the Stocks/Options/Futures thread??

Zach

RedTiger

In a few minutes:
Buyers and sellers find an equilibrium. More buyers means higher prices, more sellers mean lower prices. Each buyer and seller might be motivated by a thousand different things (including the possibility of manipulation). Monetary policy, external news events, technical chart formations or price levels, holiday gift giving, are some of the factors that cause some folks to buy or sell. Buyers think prices are going higher, sellers the opposite, so each day, each moment, they line up and find a new equilibrium.

Someone made the analogy of technical analysis to predicting movie hits or predicting the plot twist to a new current movie. Watching a lot of movies doesn't guarantee that a person will be able to predict the next hit when it is only an idea, or what the plot twist will be in a new film. Still, most of the major decisions are made by those that have watched a lot of movies, and a lot of movies do have similar plot elements. Same with investments, knowing a lot of the past doesn't guarantee the future, but most current decisions about money are being made by those who have seen a lot of "movies."

If the basic educational websites are too confusing for a novice, it is unlikely that I can shed much light in a few paragraphs, other than perhaps more cryptic analogies.

zrlevin

That much I understand. I guess my confusion stems mainly from the chart formations and the information board members seem to gain for them. Lately there has been a lot of talk about wedge formations and parabolic movement. What are these things, and what do they typically mean?

mhammerman

stock chart formations with pictures and arrows

zrlevin

That site is perfect and likely to answer all of my questions. Thanks!

Meltdown

<< <i>stock chart formations with pictures and arrows >>



I just killed an hour reading those charts as well, thanks for the link.

derryb

Simple Charts

Simple on-line investing courses