Grey1
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I would like to explain about cycles first,,.. We believe market goes through cycles.. we believe in this because we are technicians,, The cycle in financial market is very similar to day/night cycle.. Our daily cycle is 24 hours ( amplitude) and our watch is our indicator.. So by using our watch we know exactly how far we are from the top (day ) or bottom ( night ) of our daily cycle...A cycle in market is however very difficult to measure and the first rocket scientist who finds a way of measuring the amplitude of the cycle mathematically be trillionaier in no time.. It is often said it is not possible to find an answer to the above dilemma..
Lets move on ..
Technical Indicators need to know the cycle's amplitude to be able to call the top and the bottom of the cycle and as a result one could buy low and sell high. But did not we say cycle could not be measured ? yes we did .. but we said it could not be measured mathematically , we did not say one could not measure by other means such as looking at the historical tops and bottoms and extend the empirical findings into the future..
I will expand later..
Lets move on ..
Technical Indicators need to know the cycle's amplitude to be able to call the top and the bottom of the cycle and as a result one could buy low and sell high. But did not we say cycle could not be measured ? yes we did .. but we said it could not be measured mathematically , we did not say one could not measure by other means such as looking at the historical tops and bottoms and extend the empirical findings into the future..
I will expand later..