Quote from Grob109:
This is an interesting and pervasive truth of the marketplace since I have been plotting away (1957).
for some reason the slow iterative process of designing and inking a veluum chart for making blank brownlines, then pencilling in the daily HLC for a universe teaches you something after a few years.
It made a connection for me between my gullwing and the pencilling.
Seriously, that a parallel line works is a deep and pervasive statement about the intimate connection of price and volume on the chosen trading fractal.
It is very relaxing to me to know that I can understand the markets. I devoted a room to charting and keeping racks of the the page of the WSJ for years. The drafting board I kept for those years was high and the stool was tall. florescent lights had been invented by then as well. The smell of brownlines mingled with the smell of newsprint that was yellowing where the sunlight hit it. Cedar pencil shavings and graphite sandings were there occassionally too.
Plotting was an evening task as was annotating TA formations from price and volume combo charts. I also read the papers and would pick up another stock for my universe occassionally. That meant backplotting for six months (the width of my first chart layout) to gain a familiararity with the chart's behavior. Then I did six months of annotating.
I have continued to think about things for a long time now.
What principles guide making money. The PV relationship, market pace and volatility, and chosing universes come to mind as the framework. The TA stuff is founded on that.
So at one point I got into the RPI mode (knowledge and thoroughness). Thats where the question you asked comes from for me. The deeper question was just like what connects relatavistic and non relatavisitc in TPhys. This Q is: what glues everything together pragmatically. What is the cornerstone that phyically allows you to build the money making tree. People who trade do. They behave practically and pragmatically. My microcosm of people was the barber shop at the top of the street across from the Pickwick in Greenwich. It was hard to pay for a haircut there because of my reputation as a young person living in Rockridge and "charting". Darvas book was not out yet and I was traveling in parallel with him it turned out.
The line parallel to the trend line is there and works and is a statement for time immemorial. Why? The consciousness of the marketplace caused by the complex of people in it is a stable and huge enterprise. Millionaire barbers epitimize how informal information seeps through the system. This glue leads to conclusions.
I sat on that stool long enough to get to: what alternative could ever come into being as a substitute for the line parallel to the trendilne in a trending market. EMT says alot. But the "channel" and its long diagonal is where the answer is for making money.
I started getting free hair cuts about five years out of school. around that time I was able to mentally integrate how no other possibility than a pair of parallel lines could scope and bound the near term progress of the variable used to make money.
This is not an intuitive statement. I am stating something a Cray can handle quite well given the properly experienced programmers. Note that skill is not the criteria. thee were about five guys at IBM who operated as I did on the final mainframe test floor. We were not allowed to ski (I made a personal exception) nor ride bikes(motorcycles). Our peculiar mental ability and agility allowed use to troubleshoot total systems mentally based upon displayed symptoms. I don't know which way it went for me. form the market to the mainframes or from the mainframes to the market.
To "know" that the channel which is drawn out ahead of the present on short term, intermediate term and long term fractals (one chart can be used for position trading equities on these three fractals using daily data) "works" as the abstract representation of the market variables as a consequence of deduction from a respresentative synthesis of knowing and processing knowledge of the market through unfettered experience.
The above gobblygook and babble to 4 out of 5 people, is not an answer. For somepeople it is a rich and pervasive statement because it concludes that in a huge and complex system the glue is always present as a fundamental and clear solution whereby no other solution has the capability to approach this articulation.
I am just a person. I have been granted, by serendipity, once in a while, a good look at a few things. Were there a group of buddies in just one field that I would gravitate to it would be growers. A bunch of them made Guinness for diverse reasons.
for making money, it is good to just sit and think through once in your life why price approaches and hits and goes away from the extrapolated line the YOU drew in advance of price in time.
Knowing the long diagonal exists is what solves a lot of the problems in going from entry and exit mentality to the hold/ reverse mentality. for example what if the illiquid thread were written from the viewpoint of the long diagonal and a hold/reverse orientation? he syas I leave to early and/or too late. He is currently "putting to hole out" using the long diagonal as the hole. Know there is a hole to shoot at is his only small problem.
The original Q has a companion. It is analoged in ET by the period just before and after Scientist discovered for himself how markets move. the channel understanding leads to another fundamental truth of markets. That is, market operating points do not jump around, but instead they migrate. I use the complex of nine tic tak toe cells where the operating point is in the middle. You move this piece of toast from place to place on the larger board of cells. The construct of cells can be done in a variety of ways. whatever is chosen (I liked Scientist's diamond shaped construct for mental entertainment quite a bit) you "see", finally" why jumping around can not be possible. It is a reasoning process rarely encountered. Market operating point on the simplest map has eithr a simple or compound movement possibility. simple is more probable...good..... compound (changing the ordinate as well as the absissa) is less probable. "Going to" another point turns out not to happen. What, reasonably, does happen is that alternatives are "blocked". Try setting up back testing to get signals on blocked paths...lol.... Of the 8 alternatives, finally after blockings of singles and blockings of groups, but one alternative remains. Try playing with CCC, for example, which leads to BO or FBO depending upon which of the three locations relative to R and S the CCC occurs in.
So this orderly trending by the use of extrapolated multi channels is the essential pramatic operational "picutre" of the market. Once you "know" this you have left behind the "competition" (there really is no competition for expert traders) far behind and, in fact, they always "push your trades for making money.
