Great analogy
Avalanche prediction requires the study of the snowpack both
historically and how the snow structure has metamorphosed over time. One
of the prime causes of avalanches are weak layers and slab formation.
Weak layers in the snow pack are layers in the snow that cause the snow
on top of it to slide off it and down the hill causing an avalanche.
Weak layers can be low density snow or an ice layer or hoar frost
flakes. Slab avalanches are created when higher density snow bonds
together then slides on a weak on steep hill. Avalanches can kill.
Avalanches remind me of markets. You can study market structure
historically by looking at the number of trades at a price. Over time
the density may change. Market order depth structure is not available in
full but could be inferred to some degree. Some parties have access to
full book.
The theory is there are weak layers in the market structure that
might cause a market avalanche or rapid rise. There may also be dense
layers in the market structure. An example is a long bar with big price
change but low number if trades. Time may change the number of trades at
the prices or depth of orders might affect the reactivity of the bar.
And a gap is also an example of a weak layer.
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