Hello, welcome to the blog space for VIRA. VIRA is a financial application released by Viracocha Enterprises Pty Ltd, we are an Australian company dedicated to research and technology development for the financial markets. This blog is for the benefit of VIRA users and in here we will discuss the applications and uses of this technical analysis tool.
After quite a journey in the research and development, the Vira mobile app is ready to go. Vira (short for Virachocha) was released for Apple iOS on October 12, 2013. We are all very excited here at Virachocha and we invite anyone interested in stock trading to try out the app. The applciation will be available for free download from the Apple store during the first couple of months so please download, try it out and feedback back to us. We will keep the news coming with practical application of the tools and also we have some instructional videos in the pipeline and will post as soon as they are ready. Just type “Vira finance” in the App store and you will get to it.
In the world of technical analysis, tools are aplenty and strategies are sacred! When trying to introduce a different approach one is immediately confronted with a defensive, quasi violent opposition. It seems than any new perspective is interpreted as an attack on a particular investor’s strategy. So it is important to say this – “Whatever your strategy is, that is fine” – It is a function of the level of risk that needs to be kept in comfort, as well as other factors. So we come in peace… really we do.
Now with the introduction of VIRA we have been doing a lot of one-on-one discussions with investors about its uses. Once we get past the defensive line, the next thing that needs to be clarified is why. Why in all that is holy did you guys came up with this? From our perspective the answer is simple: We thought it was needed. VIRA’s vision was to put out there an insight for investors, and our main goal was to get to those investors that don’t necessarily do this day in day out. We, the normal people, may all have some money in the market, and in many cases, the information is not all there.. yes, it is not efficient. So with that in mind we took to the task of placing a tool that could add some value to decisions. The main principles of VIRA are to try to not react to noise (what else is new…) and to include the visibility of the volume. There is enormous focus and so therefore a great amount of solutions, applications, robots and fembots already dedicated to price. We thought volume deserved some space too. An important thing to consider is, just like any other tool, always check the trends in the market, always check other indicators, never use only one spyglass.
A good way to visualize what the VIRA tool does is best explained in four main scenarios. I like to call this “The market of lamps”
Let’s imagine we are a merchant that trades in lamps, those nice objects that one rubs and a genie comes out… that kind of lamp. There is a market of lamps and in there the lamp traders meet to buy and sell their lamps. To keep this story flowing nicely let us restrict the merchandise to just lamps… genie lamps to be precise. Let us also establish that you are in the trade of said genie lamps and that you have a stock of them of your own, and also that you have some cash to get into the market if a good opportunity arises. Of course, let us establish that you are willing to trade in lamps and bear some risks inherent to the trade.
Scenario 1: You go into the market one sunny morning, and you notice that there is an unusually low amount of lamps being traded, and when they do exchange hands you notice that the price for them is higher than the expected price. So as the price gets higher and higher, the volume is lower and lower. This is the first scenario and the question, as always, is: What do you do?
Scenario 2: You go into the market, and you can hear the traders as you go in, today is a loud one. You notice that there is an unusually high volume of lamps being traded, and that when they do exchange hands the price of the transaction is lower than the expected price. So as the price keeps going down the lamps keep being traded. This is the second scenario and the question is “What do you do?” Now the inference here is that there is a point in which, due to the demand, the price will eventually bounce. VIRA will place you in that scenario but will not give you exactly where that point is.
Scenario 3: You go into the market, and the air smells like orange blossom. You notice that there is an unusually low amount of lamps traded at an unusually low price. Traders are starting to walk away from the market and the price keeps dropping. This is the third scenario: What do you do?
Scenario 4: You go into the market this morning, it is raining and there are big tents set everywhere to keep traders from the rain. You notice that there is an unusually high amount of lamps traded at a very high price. Traders are happy to keep going into the market, and this is keeping that price up there. As always the question is: What do you do?
In our Post No.2 we will discuss further these questions and the specific perspective of VIRA.