Quote from tokyotrader:
Ok, I know a lot of people complain about your language use, but I tried to get through all of this despite the fact that it read like an econ theory paper. No maths, no proof, just abstract concepts.
There are a lot of trade offs in posting in ET. I subordinate theory to making an effort to affect people in a manner to cause them to repeatedly consider primary aids for making money regardless of their knowledge skills and experience.
My copy is called a very wide range of negative things just as yours do because of your personal critical nature. I do not satisfy the demands of most people who are finding themselves in a new place as they read me. None of this is ever going to change. And fortunately it happens to filter those whom cannot learn from what I suggest away from where I post. There are some extreme exceptions where people use me for their own engrandisement.
Obviously I am able to make the effort to go to where people are and deal with their immediate opportunities for improving making money. That is what I do for others.
The quid pro quo is that I learn how to address the roadblocks people face and all about doing the "work around" to achieve a new pathway for them. Here you see Babak totally stymied by several factors that are clear to several others here. I softly suggested at the beginning that he is seeing what he sees and there was, for a while in my mind, that a cure of fix could be put in. I learned that I was very wrong. So you see that I gained a great deal by going to where he is and will stay. I learned to back off from a person who wants to be very right about misunderstanding basic concepts. A sad occurance it turns out.
Now lets deal.
That said, I would greatly appreciate it if you could answer some questions on this post:
a) the first derivative of volume = volume velocity(transaction speed)?
Obviously I am speaking in a language that is foriegn to most of ET. I did not know that before as strongly as I do now. Calling step 8 gooblygook was a result of little or no understanding of how the world works in terms of time passing.
Here is an important thing to understand. Almost all understanding of things deals with time and size. I solve many kinds of problems in the professional fields in which I operate.
The tools of the trade today are very enabling. Those who do not adapt to thier use get lost by the wayside.
How is time dealt with by professional and competent amateurs?
Calculus and statistical analysis is commonly used.
In moitoring the variables of the market, time almost always enters the picture. Babak cannot see anything but equilibriuum in the market because he does not understand mostly anything correctly it turns out. He cannot get it straight that there are several variables in the market that can be monitored to yield decision making information.
Time must be looked at as a very very important ingredient to bring into focus the means of making money. Equal increments of time are most commonly used to bring the variables to life for comparison purposes.
Comparisons are mostly made by using time as the great leveler and unifier of desarate indicators.
This, then , introduces the concept of how things are varying over time. Arithimatic gives you things like moving averages. This is for simple people, the KISS types. It is totally unmuddled as Babak thinks. Next comes stuff like algebra except for the fact that in money making we do not have continuous functions. statisitcs is substituted to deal with that. So is geometry and its power to deal with the shape of the market.
Calculus, however, has embedded in it a pargmatic adjustment that allows for the trader to arm himself to deal with the fundamental requirement for making money. That is change.
Change is measured in the market most conveniently by taking the difference of two values of a variable and dividing them by a time standard. initial and final values over a standard span of time. In driving a car it is known as average speed.
Calculus has the ability to do that calculation with smaller and smaller periods of time and getting what you see on the speed dial as you drive your car. The needle moves by sweeping from one place to another.
The volume in a 5 minute bar appears at the end of the bar. the alternative is to look at the needle for volume as it accumulates to complete the bar. Look at an EOD bar. Wouldn't it be nice to know how that bar was formed as the day passes. Most traders who make a lot of money have that capability. I thought for a day or so that Babak could acquire such a capability. He cannot and willfully strives to not acquire any skills. He is a CW person who has mistaken views of CW. He is trapped.
so the technical term for the way volume is changing over time is its velocity or speed. In calculus, the provess of dividing a variable by time is called taking derivatives. they are numbered because each additional time you do it you get something that can be useful in a particular specific way.
The first time you divide by time, you get speed and as you use shorter time values it ultimately is called velocity which has a defined meaning in maths and not in ET. the second derivative is called acceleration and it is done by dividing the speed by time. This is a measure of how fast the needle in your car is shifting from one place to another. On my 750il I have another needle arcing below the speed needle. It measures gallons per mile...lolwent I am leaving an Arizona red neck in a pickup behind me in an interstate I consume a lot of gallons per mile with the 12 cylinders.
So you see volume velocity is an important measure of what is going on. It is a measure of how many transactions are going on as time passes.
I posted an attempt to explain one thing to Babak that he does not undertand correctly. I took 12 steps to do it. Obviously that smooth normal sequence can be affected in many many ways. by knowing volume velocity's workings, you get to be able to deal adroitly with all the possible pertibations that can occur.
This takes the trader to a very calm and collected place. he has a complete instument panel that measures adroitly all that matters at the moment. Let me say it n another way. Lets say you have a complete compliment of "instuments" in your glider cockpit. As skill is acquired the pilot learns to look at the right instrument at the right time. They are all there and they only need to be looked at at the correct time.
Volume velocity is like the speedometer on your car. For gliding it is the meter (instrument that indicate your rate of climb (your vertical velocity). When I get to 1500 feet per minute the needle is pinning so I switch to watching the altimeter vernier numbers rolling. I also notice my wing is at a 60 degree angle and it is seriously flexed (bent). I feel the G's also in how my bod is affected especially breathing and heart function. Emmotions..lol...
I spoke clearly about the key thing to observe in the twelve steps. It is the dissolving of the value of the potential volume of the controling group. The place where it is found is DOM or button or level II or etc... floor noise, block sizes, downward speed of the T&S, etc.....and VOLUME VELOCITY. Pro rata volume calculations continually are a very good idea.
So get an intrument for the first derivative of volume.
more follows......
