... but if we want to understand why we first made a top before making this bottom we must understand backwardation to previous day to the Max Base on the blue consolidation line (see label in orange below) at 10651.4 theorically (real top was 10652.36). BTW remark that the low of previous day was on the Feynman LB (LB = acronym for Local Bottom relative to a scale) of 10537.6 theo (in real 10539). <IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=439908> P.S.: for consolidation basic tutorial see: http://www.econometric-wave.com/quiz/dji_011203_for_021203/ for introducing backwardation in price and time concept. The consolidation above is of type I. This is Type II consolidation: http://www.econometric-wave.com/quiz/dji_050104_for_060104/
Some people were surprised by the news whereas on my model the behavior is as usual: backwardation to previous day : http://www.elitetrader.com/vb/showthread.php?threadid=29331 8:30 Economic News Reactions "we have backwarded to the theorical bottom of 10524.7 (real low was 10524.89) which was due since it was unrealised potential the day before " <IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=444753>
See also http://www.elitetrader.com/vb/showthread.php?s=&postid=444762#post444762 Price calculation is more rational as it is something that pertains with economic modelling whereas time is normally fluctuating see Mandelbrott's article http://www.elliottwave.com/education/SciAmerican/Mandelbrot_Article2.htm Now because of the equations of my model time can be imposed some constraints but theorically I have not studied it as the equations are very weird. <IMG SRC=http://www.elliottwave.com/education/SciAmerican/ManArticleCharts2.gif>
Hey Harry, Congratulations! This is the first time I read a personal contribution by yourself that seems to make sense. You are darn right not to tackle "weird equations" given the major problems you already ran into with your weird supposed properties of the number Pi. I see you're picking up! Be good, nononsense
It is not the supposed hysterical crowd which by magic or some metaspsychic power would buy at this exact level, it is an INTERVENTION probably from CENTRAL BANK: From ral's report <IMG SRC="http://www.econometric-wave.com/Friday%20intervention.gif">
Since I just posted an example on the other thread "Trendiness of Days - assigning a value " http://www.elitetrader.com/vb/showthread.php?s=&postid=462319#post462319 <IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=462319> Remark the Feynman Local Top at 10660.9 theorically - see label with a red border - and what the market did in real after opening: it only pullbacked slightly above at 10662 before sliding down hard and the low of 10570.3 was just below the Feynman Local Bottom at 10573 theorically.