Do Trendlines work?

[Spydertrader]

Quote from Ezzy:

Are you suggesting that because of the fact that by knowing one part, we already know the other - that what we have is sufficient and forget the other stuff?

I've suggested that you cannot forget 'the other stuff' because you already know it. The entire journey traveled thus far represented a quest to 'learn' the pieces of the puzzle. You've learned them, and learned them well. Now, all that remains is taking the pieces and putting them together - continuation or change. In other words, can you send a 'hold' order to your broker?

- Spydertrader

 

[ljyoung]

I've attached a picture of a catenary (from Wikpedia). This graph can be depicted as a sum of exponentials. It describes the position of a weighted chain [a = f(weight)] hanging from two points of identical height.

If the pace distribution is in the form of a catenary, then it must be a "semi-catenary" unless we wish to give a sign to the volume which composes each pace category (up = +, down = -). Yea? Nay?

lj

 

[ljyoung]

Quote from Spydertrader:

You know this as well. Hence the name: Price - Volume Relationship. Remember, the ultimate goal does not involve knowing the exact Volume level. The ultimate goal reflects the trader's desire to understand the signals provided by the market. As traders, we 'see' these signals reflected in the market mode - continuation or change.

- Spydertrader

My point was not to do with the exactitude of the volume construction but rather to do with the fact that, for me at least, I don't know what volume proxy I would be constructing from the price.

lj

 

[Spydertrader]

Quote from ljyoung:

If the pace distribution is in the form of a catenary, then it must be a "semi-catenary" unless we wish to give a sign to the volume which composes each pace category (up = +, down = -). Yea? Nay?

Start with something far less complicated. Which mode causes the trader to act?

Quote from ljyoung:

My point was not to do with the exactitude of the volume construction but rather to do with the fact that, for me at least, I don't know what volume proxy I would be constructing from the price.

You aren't constructing a proxy. You're constructing a Volume Pane. Add context, and everything needed for mode determination exists.

- Spydertrader

 

[ljyoung]

Quote from Spydertrader:

Start with something far less complicated. Which mode causes the trader to act?

A catenary isn't particularly complicated but rather is a picture of what's happening as one moves through the various pace levels. I find that neat. As to whether the catenary construct is rigorously true (mathematically-speaking) I'll leave that to others to verify. So far as I can tell, the Jokari says it all. N'est ce pas?

You aren't constructing a proxy. You're constructing a Volume Pane. Add context, and everything needed for mode determination exists.

Pane, proxy whatever.

- Spydertrader

lj

 

[Spydertrader]

Quote from ljyoung:

Pane, proxy whatever.

No. Not - whatever. The construct isn't a proxy - period. Again, everything needed, you already know. Pull up a few charts (one's with Volume), and note what constitutes change - on the same fractal. The answer you seek resides right in front of you.

- Spydertrader

 

[ljyoung]

I should have placed a hyphen in between proxy and whatever. Less confusing. If there is something more to this than the Jokari, then I'm flummoxed, in a dither as 'twer'.

Luckily, I know just the person to help me out of this quandry and after PM'ing him and getting this matter clarified, I'm going to tell him to come and visit you in your dreams tonight (because he can do stuff like that) and repeat again and again and again, the phrase (see attachment).

lj

 

[Spydertrader]

Quote from ljyoung:

I should have placed a hyphen in between proxy and whatever. Less confusing. If there is something more to this than the Jokari, then I'm flummoxed, in a dither as 'twer'.

We use The Jokari Window to learn. You've progressed past the 'learning' phase. The time has now come to apply that which you have learned. Think: Differential Diagnosis - but with only two possible disease states. Continuation or change.

- Spydertrader

 

[ljyoung]

Quote from Spydertrader:

We use The Jokari Window to learn. You've progressed past the 'learning' phase. The time has now come to apply that which you have learned. Think: Differential Diagnosis - but with only two possible disease states. Continuation or change.

- Spydertrader

Right on Spyder. And the four became two became one.

lj

 

[tradersaavy]

A chart with trendlines.