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Eve charts : Median day price question
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Jean Duchesnois
University of Caille
Gallente Federation
#1 - 2015-12-14 14:58:11 UTC
I'm trying to understand the basics of the market and I've come to take a look at the median day price indicator.

So, if the median day price is closer to the top of the min / max price bar, it means that most of the stock is sold trough sell orders, and so that demand is high and that price is more probably going to rise. And vice versa.

Am I right or did I ****** up ?
voetius
Grundrisse
#2 - 2015-12-14 18:32:52 UTC

You are right in saying that if the average price is higher than the mid point between low and high then more is going through sell orders than buy orders, and conversely if the average price is close to the low price that most items are going in to buy orders.

However, I don't think it says anything about demand. It just reflects the nature of that particular item, where it comes from and how it can be acquired by sellers.
Jean Duchesnois
University of Caille
Gallente Federation
#3 - 2015-12-14 18:37:55 UTC
No I'm not talking about the average price, I'm talking about the median (the yellow dot). Tough I'd say your answer would be more or less the same ?
Dethmourne Silvermane
Silvermane Holdings LTD
#4 - 2015-12-14 18:44:25 UTC
Jean Duchesnois wrote:
No I'm not talking about the average price, I'm talking about the median (the yellow dot). Tough I'd say your answer would be more or less the same ?


"Average" and "Median" can be used interchangeably in a number of settings - Median is a fairly common method of generating an average (though you're probably thinking "Mean price" when you read "Average").

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Jean Duchesnois
University of Caille
Gallente Federation
#5 - 2015-12-14 18:59:15 UTC
Let's say there are 500 sells in a day, and you are counting them from the lowest price to the highest. What I'm talking about is the value of the 250th one. That's what I called the median. I'm not really easy with English, so when it comes to relatively uncommon terms I'm a bit lost.
Rhivre
TarNec
Invisible Exchequer
#6 - 2015-12-14 20:44:28 UTC  |  Edited by: Rhivre
I use the table instead of the graph, for me, its easier to do "at a glance" calculations of if the item goes to buys or sells.

If the Average price is closer to Low, then its going to buys, if its closer to high, then its going to sells.

For whether price is rising or falling, I use the 10 day or 5 day graph.

An item going mostly to sells does not mean the price is rising, it can mean that people are not happy with the buy price, and so are listing it themselves (as with T2 items, some higher end raw materials, planetary goods etc)

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Rykker Bow
Center for Advanced Studies
#7 - 2015-12-14 21:54:38 UTC  |  Edited by: Rykker Bow
Jean Duchesnois wrote:


So, if the median day price is closer to the top of the min / max price bar, it means that most of the stock is sold trough sell orders

Yes this is correct


Jean Duchesnois wrote:

and so that demand is high and that price is more probably going to rise. And vice versa.

Usually this is not a part of the graph that can be of much use in predicting futures or trends. If you're looking for trends or future predictions (I refer to them as cycles, both natural cycles and player driven cycles and both can interact with each other making very dynamic and profitable situations in passive and aggressive tactics) there are much better methods

To expand, and when I'm bringing in new players to station trading, I use popular rigs to show how the median day price in the graph gives information. T3C subsystems are another good example but are high on the line for different reasons. Rigs are not a very nice item to station trade as they're a one time use item. Unlike a turret or module, once a rig is installed it cannot be removed and resold on the markets and there is not much of a resellers market. The yellow dot on the median day prices for rigs are usually at or near the very top yellow line indicating that most action is towards the sell orders. Manufacturers bring in their rigs, put them up for sale and the buy orders stay pretty slow. So when looking for items for station trading, you're looking for a median day price with the yellow dot somewhere around the middle of the line. This shows an item that has a good inflow and outflow of goods which is perfect for station traders. Too high on the line and your buy orders are very slow to fill, and too low on the line means you get lots of stock but selling them would take much longer.

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