I will explain why V shapped bottom regarding the indexes

[college_trad3r]

Quote from stock_trad3r:

i realized I made an important mistake with the equation. You integrate over time and not price. duh. The m1 value is the average slope of the price function over t1 to t2. The price integral is the average price of the price function between t1 and t2. p2 and p1 aren't needed for this example.

3rd time:

for the sake of simplicity, when explaining v shapped revovries the p(x) function will become a line and the volume integral will compress to an arbirary variable 'v' for volume.

if x=t why are you using both in the same function? If you don't simplify your energy function alot of people will be turned off by the apparent complexity. It should read P(t)dt and V(t)dt. Also since your function describes the distribution of energy in the stock market, wouldn't it be logical to calculate the entropy also? high entropy would means alot of inefficiency is present in the market, thus alot more money to gain from it

 

[kowboy]

Quote from stock_trad3r:

such as the SPX and the DJIA are possible

1974 and 2002 are tow example of v shaped recoveries. The major indexes were able to recover form 50% losses in roughly the same duration as the losses occurred, hence forming a v bottom.

So why are v bottoms possible? Why do indexes have such a strong propensity to recover their losses so quickly as seen today? The dow and Sp00z are up 5%.

So just how much of your capital are you placing on this prediction? Or were you just guessing?