Dr Clio Cresswell provides a Tedx Talk on how complex mathematics can be used to describe all facets of our lives and isn’t just relegated to the hard sciences like math or physics. It really comes down to innate pattern recognition, and then coming up with equations that can explain that type of behavior.
What I find surprising is that in our modern age of mathematics branching out into more and more areas, when it comes to short term trading, the prevailing consensus is the short term market is random with no discernible order and therefore can’t be “timed”, or “predicted”. The irony is a good portion of these folks who say the market isn’t predictable in the short term will then try to make the case that the market becomes predictable in the long term, which is contradictory when you think about it. The whole is comprised of the sum of its parts, so if the market has a structure for the long term, it should have one for the short term. Conversely, if the market is random in the short term, extending it out won’t change anything and it will remain random in the long term as well.
The key to successful Day Trading lies in finding these elusive complex market patterns and understanding them so one can project future movement, which is the essence of market timing.