Wave Theory, wave collapses, notes

Discussion in 'Technical Analysis' started by gwb333, Jun 2, 2004.

  1. gwb333


    http://radio.weblogs.com/0133588/categories/t1Indicators/2004/05/27.html#a22 (full text and pictures)

    Imagine personal relations in this way: Its the interchange of particles created in a space where a flow exists from one individual to the other. Goods and services likewise flow as well as money on established lines of transit and interchange.

    Purchases of stock require the buyer and seller to agree to a price for the security and communicate about such a sale in some way - usually through stock exchanges. The Stock Market is thus a collection of communication channels from buyer to seller.

    Examine a simple form of communication such as talking to someone. Two people must be present and agree in some slight way on part of the communication for it to truely exist. A slight attraction to the communication of some sort must exist on the person receiving it and a slight impulse towards sending such must have been created by the person doing the talking.

    Breaking it down further recognition of each other had to occur prior to any talking.

    A saying that has had some staying power is "If looks could kill". If someone wants to generate enough ill will and project it towards another that would cause a disruption of that communication and while it wouldn't kill it certainly would disrupt.

    The collapse of a smooth interchange of ideas would be brought about.

    The market as a whole is subject to shocks as are individual stock issues, where the turbulence connected to the idea of the stock or the market and the reality of the them has been disrupted.

    Thus where you have easily defineable interchange flows from the public to each other and the company to its shareholders you get predictable and rather measureable and constant price patterns - and where they have been disrupted you should find in one form or another a "look that kills", and a collapse of the wave function of interchange.

    In using technical analysis this is theory that might be speculated about as to causes and effects.