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how best to use regional average as an indicator?
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Luna Fumarisa
School of Applied Knowledge
Caldari State
#1 - 2013-08-10 14:40:27 UTC
When posting a buy/sell order, how much weight do you give the regional average? I know it's useful as a "speed bump" of sorts to help you notice a fat-finger error on pricing. It's also useful when setting buy order price if you see something selling for 70% below regional average. Clearly there are less obvious uses that I'm missing, but I'm not even sure how this average is derived.

Perhaps the question is too broad and simplistic, but I'm just curious to hear some different perspectives on using market average for pricing and trading.
Rhivre
TarNec
Invisible Exchequer
#2 - 2013-08-10 14:52:03 UTC
Regional averages I use for figuring what price people will sell/buy to happily.

20-30% above or below, most people wont even blink at right click sell or buy from.

Of course, there will always be buys and sells from ones waaay higher than that.

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arabella blood
Keyboard Jihad
#3 - 2013-08-10 15:11:26 UTC
As Rhivre said, Its usually only a metric to check if people will buy, or will the annoying pop-up will come and warn them im stealing from them :)

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Umar Umarhabib
Doomheim
#4 - 2013-08-10 15:58:59 UTC
Luna Fumarisa wrote:
When posting a buy/sell order, how much weight do you give the regional average? I know it's useful as a "speed bump" of sorts to help you notice a fat-finger error on pricing. It's also useful when setting buy order price if you see something selling for 70% below regional average. Clearly there are less obvious uses that I'm missing, but I'm not even sure how this average is derived.

Perhaps the question is too broad and simplistic, but I'm just curious to hear some different perspectives on using market average for pricing and trading.


In my past experience if you try lowball, you wouldn't get as much quantity even if there is no buy order competition.

Let's say Large Shield Extender - fair market price is 750k. You won't get much even if you are the only buy order at 250k.

But if you up the price to 400k, you'll get much more. You want to avoid pricing it where people get the popup "warning, the price is significantly below market price" or whatever it says.
Sir SmashAlot
The League of Extraordinary Opportunists
Intergalactic Conservation Movement
#5 - 2013-08-11 07:34:36 UTC  |  Edited by: Sir SmashAlot
The regional average can be manipulated relatively easily on a good number of items. Best to take a look at the graph and use that to determine the price where there is a good probability of finding a buyer in the timeframe you work in. Use that if you are a set and forget trader. Otherwise just undercut the guy with the lowest price so long as it is above your cost or margin target. Then update when time and motivation is available.
Rhivre
TarNec
Invisible Exchequer
#6 - 2013-08-11 11:11:21 UTC
I would be careful about the graph, especially the donchian, as it is easily manipulated with 1 transaction.

If the donchian hasnt been "broken" then use it to find the range of prices at which people will buy over time.

Alternatively, I tend to prefer the history table, which gives you the daily range.

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Samroski
Middle-Earth
#7 - 2013-08-13 18:51:17 UTC
Sir SmashAlot wrote:
The regional average can be manipulated relatively easily on a good number of items. Best to take a look at the graph and use that to determine the price where there is a good probability of finding a buyer in the timeframe you work in. Use that if you are a set and forget trader. Otherwise just undercut the guy with the lowest price so long as it is above your cost or margin target. Then update when time and motivation is available.

If you're dealing in a few items, it may be worthwhile to manipulate the regional average yourself to get better margins. Regional averages may not fool experienced traders, but the average joe swears by them.

The annoying pop up message shows it's head whenever you're buying or selling 100% above or below the average, thus price your orders accordingly.

And as Rhivre says, the price history table is an invaluable tool.

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