A Kinetic Energy Idea
- Thread starter MAESTRO
- Start date
Quote from MAESTRO:
I love your LED idea! What a great physiological experiment. I shall try this. I could easily build an LED bid/ask tick indicator using green LEDs for bids and red for Asks. You can also add the sound with the different pitch. I will definitely try it.
Too late: http://www.thinkgeek.com/gadgets/electronic/5da2/
Besides adding color would in turn add relevance and that would defeat the purpose...soon you will have crazy ideas like using liquid crystals to display multiple colors and superimposed...things...i don't know if there is even a word it yet.
Can wait to see your new chart.
No,Quote from MAESTRO:
Hi Nitro. Haven't talked to you for a while. Remember our first "heated" discussion in 2002?
The other guy. What you propose is very relevant. The analogy with physical principles run deep in markets.
The only thing I will offer is, you need to work in the right mathematical field. You are working in R^2. Maybe you should consider C or even C^n
Good luck in your quest.
nitro
Quote from gehko:
Too late: http://www.thinkgeek.com/gadgets/electronic/5da2/
Besides adding color would in turn add relevance and that would defeat the purpose...soon you will have crazy ideas like using liquid crystals to display multiple colors and superimposed...things...i don't know if there is even a word it yet.
Can wait to see your new chart.
I followed you link but it is not what I meant. I was thinking more about the frequency with which the two LEDs (one for bids and one for asks) would blink following the change in sizes on the inside Bid and Ask.
I've always been somewhat skeptical about that. (Admittedly, however, I am not very well versed in the physical sciences, so my opinion is of limited value here.) Just curious: Do you refer solely to trade direction, or actual entry/exit timing as well? The reason I ask is that the latter requires a lot more specificity and precision, and I remain unconvinced that principles derived from the pure sciences can predict human hehavior, crowd or otherwise, so precisely. And since price discovery is the aggregate of human behavior in the markets, well, you see where I'm going with this...
Imo you are not asking the right question. All physical analogy models with markets must include feedback, positive and negative.
Think of a WWII gunner shooting at an airplane. He has all the equations of motion and a sophisticated radar, but if he doesn't take into consideration the fact that his target knows that he is being shot at and will zig zag (he makes his behavior non-linear) and the fact that radar is far faster than a bullet, you are shooting in the direction he was going, whereas you need to shoot where he will be when your bullet arrives. He also "sprays" an area with bullets.
The analogies with trading metaphors are obvious. For example, stops are a kind of feedback, in that case negative feedback. Adding to a position is positive feedback. Scaling out a hybrid. Support and reistance is analogous to the gunner above, spraying an area is the underlying distribution, trading with the trend means you know he is coming for you with bombs and is not going home because you are shooting at him, etc...
nitro
I see where you are coming from. All I am saying is that in order to analyze the human behavior you need to have some kind of a model. Physical analogies is just the way to help us think, understand and to come up with hypotheses. Unfortunately it's the only way to understand the world; we can only do that through analogies and models.