If there where only technical traders?

von Neumann

This is a purely therotically question.

If there where only techincal tradier i.e. those how use charts only to predict prices.

What would happen to the value of an assest.

would the asset price run to infinity (or 0) with one person holding all the shares or oscilate wildly....

does anybody know if this has been discussed in a relevent text book...If you could point me in the right direction it would be much appricated
eg

Assest value = 100

wait 1 month
trader1 says no change in value after 1 month....therefore sells
Assest value = 99

trader2 says 2 month decline........aslo dicides to sell
Assest value = 98

trader3 has rule that say if decline 2% in 2 months then buy
Assest value = 99

trader4 see positive trend and decides to buy
Assest value = 100

trader5 see positive trend and decides to buy
Assest value = 101

etc

BendiBus

Instinctively I'd think the market would come to a complete stop as at some point in time there would be either nothing but sellers or nothing but buyers.

Would depend on how good the traders are - the better the traders the worse for the market.

Poncherello

pointless question

von Neumann

Poncherello wrote: »

pointless question

Ah, that's a bit harsh

I'm just wondering if at least in princple could we have the market equvilent of "game of life"

http://en.wikipedia.org/wiki/Conway%27s_Game_of_Life

And if we can't, why can't we?