Is there anyone here who has measured the consistency of stock movement with technical analysis?
I checked myself with regards to mastering Elliott waves or patterns like Japanese candlesticks and unfortunately my answer was negative.
Apparently, unfortunately, the movement core of the stock price fluctuation is not well designed, and practically, profiting from the stock trend is a chance.
Yeah, many tried, it's really random sometimes.
Before 3.0, stocks were assumedly based off actual real life stocks and they behaved similarly, now it's kind of random.
Thanks for the explanation.
I wish it was a little more realistic. You know, I think the game would have been much more interesting and educational.
Are you sure you havent done it the other way round?
Before Stocks 3.0, they were random with internal algorithms that decided them.
Stocks 3.0 and beyond, they are pegged to RL stocks to a certain degree.
Pegging to RL stocks should mean that the stock moves must be predictable based on at least one regular pattern.
It means that you could analyze the stock's behavior with for example Japanese candlesticks within a time frame and extend it to its future behavior.
Unfortunately you can not and stocks trends in Torn Stock Market are not real and forecast is not possible. Profit from marketcap would be random.
Chedburns Announcement of Stocks 3.0: https://www.torn.com/forums.php#/p=threads&f=1&t=16220039&b=0&a=0
'- Price movements are now every minute (instead of every 15 minutes) and are based on real-world stocks in the same industries as Torn's; we won't be able to provide any more information than this.'
Since I don't have access to the source code, I can't categorically reject his words, but relying on my technical analysis knowledge, his words are not confirmed.
So you discount what the creator of the game says, right.
Technical analysis isn’t the be all and end all of the stock market, it has the potential to be fruitful but is essentially the tarot cards of the financial market, they’re in no way guaranteed
I think it is linked somewhat to real life stocks but not so much when there is a downtrend. But that is all just speculation. No one knows the code, the only thing we know is that all stocks combined in torn simply only move upward. So if it was truly linked to real life stocks, it would had crashed by now in the current marked, which it did not.
Hence why technical analysis dont work like they do in real life. What i did found out however, that they do heavily bounce on ema's particularly the 125 and the 200 (i like to work with 4h and daily chart) and the RSI index is also a strong bounce indicator, that one is different for every stock but you will find the pattern soon enough when you look closely.
Torn stocks are 10 times easier to work with then real life stocks.
You still have simple stuff like basic resistance and support levels, and sometimes a triangle movement.