Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Finding meaningful patterns in meaningless noise?

39 sec read

httpv://www.youtube.com/watch?v=b_6-iVz1R0o

 
Patternicity is a little bit complex concept to explain which explains about the the tendecy of human beings to find meaningful patterns in meaningless noise. One can see the patternicity and belief in every chartist mind those who is consistently looking for patterns into the random meaningless chart!

So Why do people see faces in nature, interpret window stains as human figures, hear voices in random sounds generated by electronic devices or find conspiracies in the daily news? A proximate cause is the priming effect, in which our brain and senses are prepared to interpret stimuli according to an expected model. Paranormalists hear dead people speaking to them through a radio receiver. Conspiracy theorists think 9/11 was an inside job by the Bush administration. Is there a deeper ultimate cause for why people believe such weird things? There is. I call it “patternicity,” or the tendency to find meaningful patterns in meaningless noise.

To more readings about patternicity follow the link

Dont miss this Ted video explained patternicity in a funny way!

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Know Your Implied Volatility

Implied volatility (IV) is a very important measure if you are trading options. It helps traders to understand the overall market expectation. ...
Rajandran R
1 min read

Trading Money – Nifty Futures Outlook using Market Profile…

Trading money is a webinar on how to build context using market profile and orderflow and how to use to those context to understand...
Rajandran R
14 sec read

[Recorded Webinar] – How to trade options using Options…

Trading options is not going to be an easier task unless you understand the complexity of the market. This is where OptionsOracle comes...
Rajandran R
31 sec read

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More