Traders Resource for Before & After Market Equilibrium - BAME's Commodity Trading System arriving soon! BAME is an Acronym with many possible meanings, including Before After Market Equilibrium...
Popular Market Equilibrium Trading Concepts for Traders
A good time to begin studying new trading techniques based on sound trading principles is today so learn about Before & After Market Equilibrium (BAME) and how to use BAME and a change in market equilibrium to trade futures for profit ...
Market equilibrium is based on economic price equilibrium which is also quite valid for analysis and trading of the important financial markets, such as commodity futures markets, stocks FX, and forex trading. The variable prices based on actions of many financial market traders act as a balancing point in market price moves and analysis. combined with fundamental supply and demand issues. Thus an obvious change in market equilibrium indicates a change in trend along with a trend change strong price prediction implications.
Futures Market Equilibrium is based on assuming the trader enjoys a trading advantage whenever the market gets out of equilibrium or off-balance, so to speak. However, since by definition small commodity traders make small trades which are basically insignificant overall thus having no real impact on the prices.
However, once a high number of somewhat small trades are combined at about the same timer-frame it will tend to disturb the market equilibrium, which in-turn tends to eventually balance itself after moving away from the balancing point; aka the gravity center. Please note, "Gravity Center" was a term often used by the most famous trader of all-time Mr. W.D. Gann).
The correct identification of the markets "gravity center" is critically important to make money trading the markets and achieve successful futures trading with accurate trend direction when using the BAME trading method and for traders who are using Gann trading techniques.
For those of you who actively trade (or desire to learn how to trade) the financial and futures markets, there are a lot of other things outside the markets you should be following. But, I guess my bigger message is for those of you that aren’t in the futures markets, whether you trade them or not, the commodities futures markets have a significant impact on what happens in the other financial markets, including forex, currencies, stock indices, mutual funds, options and individual stocks.
Assuming the commodities futures trader can successfully determine the more or less near-perfect market equilibrium point will often lead to significant profits based on the theory of the market eventually contracting and reaching market equilibrium again and he can do that with future trades too, i.e. rinse and repeat.
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