I will explain why V shapped bottom regarding the indexes

Discussion in 'Technical Analysis' started by stock_trad3r, Mar 10, 2009.

  1. noddyboy

    noddyboy

    So you are discovering that you should be selling since based on the above the market has negative energy, aka momentum?
     
    #21     Mar 10, 2009
  2. MKTrader

    MKTrader

    Not in 10? Maybe not, but I wouldn't be certain at all about that. You probably know as much about market history and cycles as stocktrdr3 to make that kind of statement.

     
    #22     Mar 10, 2009
  3. If the price function P(x) is continuous and the derivative positive along all points through t1 to t2 the energy level can be given by:

    function

    m is the slope as you can see. if it is zero (no change in price or no change in time), no enrgy is created. if no volume, no energy.
     
    #23     Mar 12, 2009

  4. !!!!!!!!!!!!!! LMFAO

    Turder hasn't posted for two dasy (possibly a record) while he's been working on his Turder Theorem of redundency and infinite stupidity so he could pwove to all dose meanies on the internets that he a smot boy.

    Good job twurder you weel smot.
     
    #24     Mar 12, 2009
  5. I'm still waiting on an explaination promised in the title of the thread.
     
    #25     Mar 12, 2009
  6. [​IMG]

    As stocks rise and fall energy is created and destroyed

    next I'll explain the energy diagrams and showing how the probability of v shaped bottoms can be calculated and follows a normal distribution.

    (edit: there is no m2)
     
    #26     Mar 12, 2009
  7. noddyboy

    noddyboy

    What is p1 and p2? Would the integral be defined if prices are fractal?

    You defined m1 but not m2. You have an extra open (

    Nothing makes sense.
    :confused:
     
    #27     Mar 12, 2009
  8. Here is an energy diagram showing how energy is created and destroyed as a stock trades from p0 to p1 to p2 to p3 and falls back to p0

    [​IMG]

    For negative values of m1 the absolute value can be taken and a negative sign appended to the final equation without loss of generality.

    As you can easily see, e1 and e2 cancel out.

    If vaiables are unknown you can use the equation given before find it by letting eL=Er. (eL= energy on the left hand side of an inflection point) and solving the linear equation. We shall use the equation combined with normal distributions to calculate the probability of future events occuring (including v shapped bottoms) that obey these energy laws.
     
    #28     Mar 12, 2009
  9. The SP500 has now rallied back to the November low of 2008 750. So support has now become resistance. The volume on the retracement was light.
     
    #29     Mar 12, 2009
  10. SP500 Daily chart
     
    #30     Mar 12, 2009