Saturday, February 26, 2005 9:55:20 PM
synchronous elements in technical compression #1.......
Here come a few unorganized ideas and observations concerning technical compression. They will be divided into multiple posts. They may help someone. They may confuse someone.
Technical compression is often the result of synchronous technical events. As you may know, I am a grand proponent of synchronous events making the world go ‘round. I hope you will see the connection in all this once these posts are completed.
From time to time we get the luck of participating in the run most of us would die for. At some point the technician must determine an exit through various means available. In technical compression, as in other periods, we often look for divergence or some indication given from technical studies using traditional analysis methods. Many of these studies are finite while traditional analysis relies on their being infinite in general activity. This is where we can find trouble or errant reason for exit during these special positions. If a study is finite and the price trend is compressed, where might the study go if gone to extreme elevations? Sideways or down. And here arrives a false signal.
If one believes in relativity, then mathematical synchronicity must exist. Knowing if compression is underway or likely is a large part of the battle. And if it exists on one side of the event, it must exist on the opposite side - “big bangs” exhaust “big bangs”. The chart below demonstrates this idea.
Synchronous events are those where mathematical occurrence are duplicated in unison. This chart (lavender line) shows %r and cci having crossed over cardinal elevations simultaneously. The result is a change of trend. The white line identifies a concerted occurrence of deeper synchronous activity - %r, cci, and stochastics cross over cardinal elevations simultaneously. The subsequent change is substantial in comparison.
Note the stochastic study is out of element to be considered above. These three studies are finite in geography. That is, they can only travel so far in one direction before inverting. So, if price is compressed in trend, divergence could easily be erroneous. What we need do is determine if the trend is compressed.
The chart above identifies both of the big bangs resulting in compression and its termination. If one, then the other. The trouble with this is some stocks have differing mathematical personalities and optimizing cardinal elevations may be necessary to inherit benefit from this method. We’ll look at that soon.
Knowing if compression exists lessens the battle. You should expect traditional analysis to be discounted during these episodes. There are other means in identifying technical compression. I may post another or two in the near future. Another “lesson” is coming.
Outta here!!!!!!!!
Here come a few unorganized ideas and observations concerning technical compression. They will be divided into multiple posts. They may help someone. They may confuse someone.
Technical compression is often the result of synchronous technical events. As you may know, I am a grand proponent of synchronous events making the world go ‘round. I hope you will see the connection in all this once these posts are completed.
From time to time we get the luck of participating in the run most of us would die for. At some point the technician must determine an exit through various means available. In technical compression, as in other periods, we often look for divergence or some indication given from technical studies using traditional analysis methods. Many of these studies are finite while traditional analysis relies on their being infinite in general activity. This is where we can find trouble or errant reason for exit during these special positions. If a study is finite and the price trend is compressed, where might the study go if gone to extreme elevations? Sideways or down. And here arrives a false signal.
If one believes in relativity, then mathematical synchronicity must exist. Knowing if compression is underway or likely is a large part of the battle. And if it exists on one side of the event, it must exist on the opposite side - “big bangs” exhaust “big bangs”. The chart below demonstrates this idea.
Synchronous events are those where mathematical occurrence are duplicated in unison. This chart (lavender line) shows %r and cci having crossed over cardinal elevations simultaneously. The result is a change of trend. The white line identifies a concerted occurrence of deeper synchronous activity - %r, cci, and stochastics cross over cardinal elevations simultaneously. The subsequent change is substantial in comparison.
Note the stochastic study is out of element to be considered above. These three studies are finite in geography. That is, they can only travel so far in one direction before inverting. So, if price is compressed in trend, divergence could easily be erroneous. What we need do is determine if the trend is compressed.
The chart above identifies both of the big bangs resulting in compression and its termination. If one, then the other. The trouble with this is some stocks have differing mathematical personalities and optimizing cardinal elevations may be necessary to inherit benefit from this method. We’ll look at that soon.
Knowing if compression exists lessens the battle. You should expect traditional analysis to be discounted during these episodes. There are other means in identifying technical compression. I may post another or two in the near future. Another “lesson” is coming.
Outta here!!!!!!!!
There comes a time when you define the moment, or the moment defines you. - Tin Cup
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