Market Dynamics

Market Dynamics deals with price movement and motion characteristics of traded equities. It has a range of applications, including calculating expected price movements, identifying price support or resistance levels, or determining other motion attributes of an equity or aggregate market index based on the underlying fundamental data such as earnings releases. Market Dynamics may also be combined with existing technical analysis techniques in order to gain insight into an equity's projected price movement or established support level.

Market Dynamics offers a systematic approach to measuring and forecasting price movement characteristics of traded INSTRUMENTS. The formulation utilizes parallels between movement of equity prices and classical mechanics and fluid dynamics disciplines. Specifically, it views the price of an equity as a measure of its potential energy, and changes in earnings per share as a force or pressure behind observed price movements.

Market Dynamics introduces a range of motion indicators such as price channel, velocity, momentum, intensity, and viscosity.

External Links

1 "Market Dynamics and its Application to Measuring and Forecasting Price Movement and Support Levels of Traded Investment Instruments," by Joshua Dayanim, 5/30/2009.