Muller-Lyer Illusion

Discussion in 'Psychology' started by rateesquad, Feb 26, 2007.

Does Muller-Lyer Illusion exist in markets?

  1. Yes

    4 vote(s)
  2. NO

    3 vote(s)
  1. If anybody heard of this concept it is illustrated in the picture. (b/c, I can't really explain it) Picture worth a thousand word, huh? SO to save a thousad words, I posted the pic and this.

    Now, I wonder does this ever happen in market. Via chart patterns or indicators.

    DO people get caught by this illusion?

    Is there anyway to deal with this?

    What do you say.

    Dammit forgot the pic. Look on the lower post.
  2. Here is the picture.
  3. harmless


    maybe not that specific illusion

    but others Definetly
  4. I assume we are meant to be fooled into thinking the vertical line on the left is shorter than the line on the right?

    Well, the "windows" on the left ARE smaller than the windows on the right so that kind of spoils it for me: trying too hard to fool.
  5. What does it mean if you can view the pictures and see the lines as the same length without the there any signifigance to that? is it a problem?
  6. AnnaFX


    I see your point, but thankfully technical analysis of charts, is well, technical. So while optical illusions abound, candlestick charts are not subject to our perceptual desires, but some objective measurement. Phew

  7. I dont think so, I think it is a good thing.

    Illusion are only there because thats what our perception wants us to believe. Like for instance you look at an object one way and then another way. Here is an example.

    <img src=>
  8. jnoss


    I would think that if such issues existed in a particular charting method, the method would have been revised to clarify the pattern and make the illusion have less impact.
  9. Let me ask you this question does the chart change when you make your window smaller. What if you use smaller time frame, does the chart change if the monitor is changed?

    This is Muller-Lyer Illusion.
  10. There is a great parallel to the MLI to consider.

    because I am doing some writing about markets on an assessor level (the very beginning of considerations of markets and trading), I am introducing the two very different viewpoints of the same market vis a vis the emotion sets of two different paradigms.

    I will be using NLP (not in the Tony Robinson sense but in the sense of mind building).

    Right now I am letting one thread build up 40 or 50 pages of all the facets of the CW paradigm presently refererred to as objective reality.

    The feelings set of objective reality is fear, anxiety, and anger as measured by some very high tech measurers (MIT) on big money traders of accounts that cannot beat the averages.

    Others using a different paradigm have a different feelings set and they use the CW feelings set as a measure of when they are going astray.

    So the comparable MLI for trading is the two emotion sets that come from looking at the same market from the vantagepoint of two differing trading paradigms.

    One can test for the failure of another but the reverse is not true. It is a one way street away from the CW.

    The beliefs systems are such that the results of one is not in the spectrum of the other and vice versa. They are simply offset from one another by such a margin that there is no overlap.

    It is a very beautiful senario to see how one paradigm engenders a requirement for treatment to return to normal (human existance) and the other shifts directly away from the fight or flee syndrome of the CW.

    What is the basis of the emotional illusion (the comparison of opposing emotion sets engendered from the same markets)?

    How can looking at the same thing engender fear or comfort?

    How can looking at the same thing engender anxiety or support?

    How can looking at the same thing engender anger or confidence?

    The MLI contains the answer.

    We see consciously 10,000 units a second. Concurrently we take in 20,000,000 units a second unconsciously.

    The summmation of input overtime has consequences.

    The illusion builds over time for both paradigms of trading.

    One focuses on the trade the other focuses on the market.

    As time passes for CW traders risk grows; they move away from the intial bet conditions. Increased danger.

    As time passes for the trader who is always in the present and the persent only, the market is simply reassessed to update the present market condition. Reasurance.

    Same market, opposite sides of the sensory emotional coin.

    Entry/exit of CW takes a person to the sidelines between profit takings. This is a long period of time between profit takings.

    Hold/reversal of NOW trading keeps the person in the market and he has no expereince of being sidelined during RTH's.

    There is no way to heighten the differences of trading than the comparison of the dynamic of how it feels to be at increasing risk while in the market or sidelined when risk is too great all compared to how it feels to be on the right side of the market at all times.

    It is looking at the same thing from two different states of inseparable sensory perception and its emotional constituents.

    The MLI and the market sensing are two examples of NLP at work.

    CW trading and NOW trading see the same market and create opposing emotional constructs.

    fear, anxiety and anger versus support, comfort and confidence.

    #10     Mar 5, 2007