Quote from jack hershey:
The log I jotted down was an events based list.
Under time, all I did was number to order of events.
I just listed what happens on "the Pattern" for a cycle which would include a long and a short in any order.
Your P,V is a more complex chart illustration.
All I wanted to achieve was a log of the simplest order of events.
My feeling is that if a person starts with a foundation, he can add building blocks as required to achieve having a fintie and fully differentiated mind.
The B2B 2R 2B is three parts. Part one involves tend overlap beginning and ending. B2 is those events. A peak of volume goes to a traough at the moment the price crosses the former RTL of the prior trend. This is called the BO of the RTL (at a volume trough) Price is a portion of the way through its first movement called B2B. B2B means Balck to Black and thus is a long first move of a trend. At the B after the 2, the price arrives at point 2 of the new parallelogram.
When you hitched the price volume chart to the log list, you didn't do yourself a favor in any way.
I can never imagine what anyone will do to what I post. I correct it to contribute to getting a common page for both of us.
The market is very simple. Its representation has to be simple as well.
It would be very illogical for the market to turn out any other way since is is so large and has so many parasites called the financial industry.
The financial industry lobbies and cheats to make up new things faster than the regulators can keep them honest.
What is so neat about all of this is that the huge markets are, in fact, self policing and these perpetrators kind beat themsleves in any way. when they do something like serious big time cheating (swaps being tranched), they really get screwed and take all the financial planners and their clients with them.
To have our immunity to this takes scientific integrity on the level of the laws of gravity, and field theory, etc....
the log, the pattern and all the sets are a system based on how the basic and fundametal building blocks of Science must be deployed.
cheaters and shortcut types can't get this. covel immersed himself for 8 years in the societiety and culture of financial industry preactioners. And he became one of them.
we do not do that. we come to markets and just take out of the market the full offer of the market.
We build the simplest rationally based foundation.
It is a container that can signal the beginning and end of a market episode based upon events that can strech or shrink like an accordian.
For me I want along inventing many many "outsider tools" so as an adjunct I had 10 to 12 leading indicators of the price I made money trading. Some are very humorous in their construction.
But the serious business required a foundation. And on top of that go the building blocks. thisstuffis deductively reasoned out. It could be no other way.
To do thePEP and it applications, you must relax and begin with a clean slate. It is like going into a new science; do not bring any baggage.
the variable of the markets has to be a binary vector. I know some people think they have figures out I am using poor ill defined terminology. that turns out to be their problem and they go away and never return.
A binary vector has magnitude and direction in a non-continuous mathematics. No probability is used by obeying the market's dictate of long or short. How steep the market is tipped is the magnitude. the slope is the direction: long or short.
money can only be made with price change.
Make a 5 cycle log. Use the one letter symbols I have provided.
Implant in your mind the foundation.
