Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

Finding meaningful patterns in meaningless noise?

39 sec read

httpv://www.youtube.com/watch?v=b_6-iVz1R0o
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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 Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

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