trading channels

Discussion in 'Trading' started by gnom, Mar 22, 2010.

  1. The second derivatives of Price and Volume define a trend.

    - Spydertrader
     
    #21     Mar 22, 2010
  2. Thats a low blow dont you think?
     
    #22     Mar 22, 2010
  3. The first moment about the mean is zero. The second moment about the mean is called the variance, and is usually denoted ó2, where ó represents the standard deviation. The third and fourth moments about the mean are used to define the standardized moments which are in turn used to define skewness and kurtosis, respectively. Is that what you mean?

     
    #23     Mar 22, 2010
  4. gnom

    gnom

    Oh boy, this is way over my head :D

    So why do channels work in simple terms guys?
     
    #24     Mar 22, 2010
  5. I am sorry that confused you. I tried to explain the math for channels in simple terms in the post before that. This post relates to math theory.

     
    #25     Mar 22, 2010
  6. Nexen

    Nexen

    Serious question for T28,

    Have you ever demonstrated in ET why SCT does not work and why it's useless for the present as it only
    describes the past? That is your theory or conclusion on the methodology as far as I know. Anyway, I would like to read where
    you demonstrated the calumny of Hershey's methods to understand your mission.

    Serious request.
     
    #26     Mar 22, 2010
  7. nkhoi

    nkhoi


    So what grade are you in? just try to figure out what kind of math you are familiar with.
     
    #27     Mar 22, 2010
  8. In my opinion, Channels, Fibs, S&R, or any kind of trendline work because traders let it work. It is psychological.

    There are people out there, myself included, who see a trend forming and begin to draw lines around it. As some one said earlier, this gives a stop and profit level.

    As I said, it is all psychological. The reason it works is because, at that point in time, while the underlying is in whatever trend and obeys whatever line you may have drawn, there are many other traders using the same analysis. The entry or exits of these traders are also very similar at this time, which causes the "bounce" off of whatever line it is you may be studying. This system will however eventually fail.
     
    #28     Mar 22, 2010
  9. SK0

    SK0

    Because the market is cyclical through the passage of time, and fractal-wise too.
     
    #29     Mar 22, 2010
  10. Because channels represent the fractal nature of all markets.

    - Spydertrader
     
    #30     Mar 22, 2010