:: actio-et-reactio ::
amg's market charts and blather
It is no coincidence that a love of Newton's first principle, "for every action there is a reaction", actio et reactio as I learned it in my first undergrad Physics class, is at the core of my website. This is refelected not only in my market oriented "blather", but also in my meanders, which while genuinely ad hoc, has at its heart a desire to seek balance, however ephemeral, in the world around me. No doubt this is what triggered my love of bisects, and which I have shared with readers of stockcharts.com "Public Charts List" for the past three years.
Many people have written to me asking just how to use these lines. Drawing them is straightforward, but having drawn them, how does one trade them? How does one know which points to choose as pivots? Is it kosher to draw bisects from gaps, from mid-points, from close-only, etc etc. While there are many who would be adamant about their particular use, and might even point to some of my work and claim foul, I would beg to differ. One must always go to first principles before piling on higher principles. Bisects are about as simple mathematically as it gets: pick a point to start from, choose two points in the future and divide the space between those two in half. If price "behaves" with seeming order relative to those points, stick with them until it no longer does, then draw another set.
Alan Andrews freely attributed his work to Roger Babson, who like Andrews, was also a scientist. Roger Babson, founder of Babson College, says in his autobiography, appropriately titled Actions and Reactions,
Let me say that the ideas that underlie my work were selected from the Bible and the writings of Sir Isaac Newton.
Median lines can tell where the prices are headed, and the place they will reach, about 80% of the time, and when approximately that place will be reached. Slopes of alternate MLs of comparable length indicate the trend. There is a high probability that:Use the search block to the right to find more comments on bisects and forks.
1. Prices will reach the latest ML
2. Prices will either reverse on meeting the ML or gap through it
3. When prices pass through the ML, they will pull back to it
4. When prices reverse before reaching the ML, leaving a �space�, they will move more in the opposite direction than when prices were rising toward the ML.
5. Prices reverse at any ML or extension of a prior ML.
|
moon phases |
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
blather: nonsensical talk.
At times my analysis log, at times sharing what I've learned. Always my own work and views.
Content: amg
Basis: glish & bluerobot
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