Quote from jack hershey:
The mathematical problem of the markets is precisely solved using the mathematics required and stated explicitely by the deductive hypothesis set (HS) of the market and its parametric measurement set (PM) of the market.
I'll add another sentence. The mathematics of the market is Boolean Algebra and the parametric set dimensions applied to the P and V of the market are binary vectors. A vector has dimensions of magnitude and direction.
Attached is a double chart pertinent to the prior question asked of me for another measure of the market. Here you see the Dow Jones used as a leading indicator of the S&P.
The specific problem solved for trading the markets, is to determine whether a trend (a price change segment over time in one direction) is "continuing" or "changing".
No offense Jack but you didn't answer my question.
I've poised this question, outside of a market environment, to math professors, literally, all over the world and the answers was always the same.
"Yes, you can come to a conclusion to the equation but the conclusion will
ALWAYS be a greatly varying range of numbers based on the frequency of change inside that specific environment with a random starting point and random ending point. At best the starting point would be fixed but the ending point, in a variable environment will
ALWAYS be random.
[A fixed and stable whole number] +/x/÷/- [A fixed and stable whole number] = [A fixed and stable whole number]
[A constantly varying whole number] +/x/÷/- [A constantly varying whole number] = [A constantly varying whole number]
[A fixed and stable whole number] +/x/÷/- [A fixed constantly varying whole number] = [A constantly varying whole number]
[A constantly varying whole number] +/x/÷/- [A fixed and stable whole number] = [A constantly varying whole number]
To clarify my position: On a time based chart, every time a new bar is created the equation changes thus changing the outcome decision because the weight (volume) of the bar is different from the previous bar. A tick based chart varies as well, just not to the extreme as a time based chart does.
I ask this question to non-market technicians to get an unbiased answer because market technicians seem never to be able to give me a specific answer. This is because most live in a variable environment and are constantly trying to find fixed answers to their questions . . . which isn't impossible but their answers are only fixed for ONE BAR.
I understand what you do Jack with adding a volume indicator to your time based charts so that price direction is at least partially derived from the amount of volume associated with the time based bar but this is translation of volume to time which isn't exact. It's close and definitely better than some but not exact.
I also agree, in part, with your definition of [Trend - a price change segment over time in one direction) is "continuing" or "changing"] but you can't have a fixed definition of Trend in a variable environment. I would change YOUR definition, in my environment to, [Trend - price change segments, where those segments are based on exact & consistently based volume oscillations that specifically confirm price is either "continuing" in its current direction or "changing"direction]
We should always strive to achieve exact and precise answers to our questions. We should never settle on "close" as a reasonable conclusion.
