Gamblers of New York

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I don’t see gamblers around here in New York. I wonder where Behavioral finance saw them and how they coined the term Gambler’s fallacy. At the Market Technicians Association Annual Symposium it seemed business as usual. The panel was figuring out the future of markets and the future of technical analysis.

Dr. Andrew Lo, professor of Finance MIT wrote “Non Random walk down wall street”. He believed technicians played a key role in the evolution of research and in pattern recognition. The future of technicals rested in a combined approach of fundamentals, technicals and quants. Andrew shared his personal journey and the resistance he faced when he was disproving efficient market hypothesis. He tested price volatilities for different time frequencies to prove that markets were in-efficient. He talked about adopting a more scientific approach to markets. Even Herbert Simon mentioned that complexity was intrinsically simple and hierarchal. Could it be possible that markets had just one DNA pattern, say a snowflake or head and shoulder, which mirrored and created every other pattern? Could such a pattern singularity in markets be probable?

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Mukul Pal, is a Chartered Market Technician, MBA Finance and a member of the reputed Market Technicians Association (MTA). He has more than a decade of Capital Market experience dealing with derivatives and global assets. He has worked for Bombay Stock  Exchange, multinational Banks and brokerage houses in leading research positions before starting on his own in 2005. He is the President of the MTA Central and Eastern European Chapter.


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