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![]() Triunity Theory ![]() Mood – The Psychologicals ![]() Mind – The Fundamentals ![]() Body – The Technicals ![]()
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![]() Man is the Measure of All Markets. Market Semiotics analyzes three different and distinct market components, corresponding to how participants feel, think and act. Each component has its own behavioral attributes and its own specific metric. Woody Dorsey developed this method – known as Triunity Theory – over the last 20 years. But in 2003, he published it for the first time in his book Behavioral Trading: Methods for Measuring Investor Confidence, Expectations and Market Trends. The book defines the three market components as Psychologicals, Fundamentals and Technicals, or the market’s Mood, Mind and Body.
Components of Triunity TheoryIn the same way that the fields of Macroeconomics and Microeconomics simply reflect different scales or cosmoses of activity, Triunity Theory proposes an equally obvious scalar relationship. Man, or the individual investor, is a microcosm of the market as a whole. That is, the rationalization, psychology and investing behavior of an individual investor is directly related to the thinking, feeling and acting of all investors. The aggregate of all investors is, of course, the market itself. Thus, the best guide to how markets function is man himself. Thus, the market is an exact mirror of the structure of man, who has three distinct but interrelated brains. Mood, Mind and Body translate into the Psychologicals, Fundamentals and Technicals of the market. The implementation of Triunity Theory requires different metrics than those used by traditional economics. Market Semiotics uses metrics such as sentiment, slogans and price trends to diagnose the market.
Mood – The Psychologicals
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