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"Anyone who reads about financial markets in
the newspapers will come across the terms 'mass psychology'
or 'crowd psychology'. Crowd psychology is not the same as
just psychology multiplied by the number of people involved;
you need to explain how an individual can interact with other
individuals and how feedback loops and mass-movements are
created."
Lars
Tvede
Mathematical model
The mathematical model is used
to analyze Market Group Motion Behavior
it's based on the following assumptions:
 The
Market is a self-balancing and self-controlling system.
At
any given time in the Market, three Crowd Group are in effect
: the Leaders(the biggest
one), Followers and Strangers.
- Leaders - Motion,
Inertia Mass, Capital, Education, Economy, Rationalism,
Stability, Job..
- Followers - Maneuvers,
Corporation, Dynamic, Emotional, Independence, Impulse,
Success, Lost..
- Strangers - Acceleration,
Novice, Painting, Senses, Panic, Gambling, Hysteria, Alcoholism..
In a
long period of time, Leaders build Main
Market Trend, Followers make the Market Features and Strangers
make Small Market Oscillations.
The Third
Assumption is also true for short period of time. In other
words at time period in one week we can find Leaders, Followers
and Strangers. All above Crowd Group
has influence on one another.
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