Now that's becoming truly interesting, how to modify the technology in order to make people process market information better... If you don't mind me asking: what inputs are suggested to be used in addition to past data (price/volume)?
I am sorry, but in my point of view H/L points by themselves cannot be very efficient reference points as they only partially represent the points in event-time space. However, H/L points combined with their timing characteristics and other attributes like volume, size, bid/ask flow etc. become valid reference points and could be used very efficiently. The trick is to deliver this information in a format that excludes logical thinking and could be perceived intuitively.
Lest any of you reading think that I am Alex's sockpuppet straight man, it is time for me to ask a hard question. Let us suppose that I have a measure of volatoilety that I am fond of, and that I have established a threshold of same such that I consider trading if the toilet seat is up on my volatoilety icon, and go back to sleep if the seat is down. With a simple decision threshold, I still face the issue I have with an oscillating chart that the toilet seat may flap up and down rapidly. In an uncertain market, I may have my stoplight wildly flashing green/yellow/red, my stopsign spinning, my geiger counter dial fluctuating, my faucet turning on and off, my rest room sign swinging from men to women, etc., so that I am back to same decision making problem I had with charts. I am jesting much less than you might think, because this happens with my twelve indicators, even though they are mutually orthogonal. And BTW, you just admitted that you know what parameters are good to trade off of because you have "reference points."
you remind me of the justin case insurance commercial,you could be the counter point,twin brother, justaint so
By logical thinking, do you mean subjective decision-making or algorithm-like rule-based decision-making as well?
You are missing the point. Maestro will explain, I'm getting weary of saying the same thing over the years. surf