Would you care to enlighten Jack about this perhaps? http://www.mathserv.okanagan.bc.ca/math/math414/walk/Ito.htm and then the ensuing discussions on non-normality and stable vs non-stable processes, 'cause I can't be arsed.
My claim for the theory of efficiency is that it applies with reasonable accuracy. Perfection is not required in the present discussion.
"Due to problems with "Theft of Information" and harassment this Website is CLOSED..." now I understand, thnx for the explanation. ps. lets do some logic here, I don't know any current sub. and I am not an "educator" so does the site close or open to me.
Since you seem to be unable to post the entire sentence . . . twice, I will do it for you. "Due to problems with "Theft of Information" and harassment this Website is CLOSED except for current Subscribers. The only new Subscribers given access will be on a referral basis from a current Subscriber or a verified college or graduate school educator." boo bye
Price cannot be determined accurately enough to trade. Time of a price reversal can be determined accurately enough to trade.
The fact that the average end point of the random number chain is zero is absolutely not sufficient to claim that Excel random numbers are truely random. Again, they are NOT. It is absolutely possible for a semi-random number chain to give you constantly an average end point of zero. And this is exactly what is happening in your case. Sorry, I don't mean to challenge you for the sake of it, I have better things to do. But I can just tell you one thing: you are making wrong assumptions.
Equalizer. A lot of ass-muptions buried in that derivation, such as a constant drift and a constand diffusion. Neither of which allow for the fact that a tewn tick change often is followed by a four tick reversal. Help an old man understand your point, please? Is it ridiculous to talk of derivatives of P and V, or not?
I believe this is what is termed cognitive dissonance. John, did you or did you not state that the concept of differentiation of a random variable left you "breathless" as you put it in Grob's post? The link was supposed to provide some clarity to the mathematically minded who might have been confused about some of the statements. Otherwise, I don't give a flying 4X what you or anyone else thinks about the properties of price/volume trajectories. Then again, if Grob uses the slope of P and V (maybe we should call it the ideal gas equation ) and makes money from it, who are you or I to argue with him.
completely wrong! This is what the big money watch for. They watch for people who think that the market is not over sold/bought and that is when they reverse with a vengeance. They watch for the herds to show up (spikes) and that is when they catch them in a bull/ bear trap. They know that these herds will not easily abort their position easily due to their complete and utter conviction in the trend. I only go countertrend for two reasons. 1- big money does not like spikes and accelerated and big price moves , the moment they see herds jumping in (spikes) they dump half of their position on the opposite direction to push them out. 2- what you call a pullback on a 30-60 min. chart I call a trend reversal on a 5 min. I watch for the big money when they push the small fish out and jump with them. Now there technicals that I use to help me spot a reversal, if you master them you would fare well in more times than none. If you are wrong, get out at a pre-set stop loss. If you are right get out at a pre set profit taking (usually 2.5 times bigger than stop loss) I really belive that there are two types of traders, a trend trader and a reverse trader...You seldomly have a trader who could master both.