Page Two of Two:
TheBramble said:
…but I did find the TREND issue such a hoot.
This would be a statement of “Comprehension”, but (sadly for you) after further examination we are left with the following problem. Since you found the “trend” issue a “hoot” – AND - your entire argument was demonstrated as moot given the obvious fact that a Trader can’t trade historical trends (which was clearly demonstrated to anyone with a brain) – we are left wondering whether or not the “hoot” was really just a cover-up for complete and utter speechlessness.
Questions:
A) Do you exist?
B) If so, what is the proof of your existence?
C) If your academic background showed an historical “trend” towards Finance & Economics with an emphasis on financial markets that are
tradable – AND – if your academic background could be traded from the time you entered College through today, would someone have made a profit by going Long on you becoming a Trader in 2006, by trading your
“historical academic trend” towards financially traded markets from your first day of College?
Answers:
A) Yes.
B) You have a physical instantiation in space/time (whether you are on this planet or not, is a completely different question, however.)
C) Absolutely No.
(Any attempt to now
change your theory about “trends” is starting to look really bleak at this point – no?)
TheBramble said:
…If you had any unscarred tissue on what remains of your feet, you'd have had another hit!
And, if you could just slightly get up to speed here, your trading would improve a great deal more than you know!
TheBramble said:
…Try this. I'm quite serious. Let's get terribly serious and sensible.
Rather than come to grips with the clear fact that you are so far removed from the routine league of simple minded colloquialisms and pretentious solutions that you are so used to here, you instead proffer this pretentious (and quite transparent) quip of being “on top of things”, here. Humor me!
TheBramble said:
… they plotted your height on some graph paper with your height on the Y-axis and the date of the measurement on the X-axis - what do you think you would see in that resultant line? What would YOU call that line? Try not to use the 'T' word. Difficult, isn't it.
I’m going to give you one more time to get the concept of pre-emergence based on a projection, but if you don’t get this time, you will forever be labeled: bizarre!
Let’s not be this painfully general about the matter. Let’s cut to the chase with the details that you love to leave out, shall we. Using your own example to help you understand – here is the scenario in detail that you just laid out in vague and general terms:
Starting at age 5 on January 1st, 1950, your parents begin the long process (that should be a clue right there) of taking your height measurements at 1 week intervals until your 15th birthday until sometime after the last measurement taken on January 1st, 1960. A grand total of 480 readings have been taken as you progressed through the years.
Now, what would such a matrix look like. How about this:
January 1st, 1950: Height = X
January 8th, 1950: Height = x+1
January 15th, 1950: Height = (x+1)+1
January 22nd, 1950: Height = ((x+1)+1)+1
January 23rd, 1950: Height = (((x+1)+1)+1)+1
10 years later, you have hopefully grown a little and your new height on January 1st, 1965 is some factor of X over 10 years relative to each increase, or
decrease in the measurement taken over the same time-period. During the process, on each 1 week interval/measurement, your Father drew a line connecting the
previous value in height to his
present measurement. He drew simple lines to accomplish that task from each measurement in the
past to the
present measurement
at the time he took each reading. Sometime on January 1st, 1960, he took his final reading number 480.
Questions:
A) What was an absolute requirement in order for your Father to have enough information about YOU to draw his very first line that proved YOU indeed did grow in height between January 1st, 1950 and January 8th, 1950?
B) What was an absolute requirement in order for your Father to have enough information about YOU to draw his very last line that proved YOU indeed did grow in height between the last week in December and January 1st, 1960?
C) What is it about this concept that you STILL fail to fully understand?
Answers:
A) He ABSOLUTELY needed to see that you had “grown” in the “past” to a new height
on that day, or else NO line showing your
history of growth from between January 1st, 1950 to January 8th, 1950 (assuming super fast growth) could possibly have been drawn.
B) He ABSOLUTELY needed to see that you had “grown” in the “past” to a newer height
on that day, or else NO line showing your
history of growth from between the last measurement day in December 1959, to January 1st, 1960 (assuming any growth at all occurred either physically or mentally – just kidding!) could possibly have been drawn.
C) I have no idea why you fail to see this!
So, every single time your Father reached for that pen to take your height measurement, he was ALWAYS standing at
position “B” used in my previous example in another post. He could never have stood at position “A” to take your measurement. And, that is the critical point that you continually miss.
In your mind, you are totally and completely incapable of properly
separating YOUR physical existence and physical location from that of the physical existence and location of the
historical trend.
Your Father, absolutely needed as a 100% ironclad necessity, knowledge of YOUR physical growth BEFORE he could have any clue about
what direction to paint your growth line. Therefore, how could he possibly have placed a bet with his friends that you would
CONTINUE to grow
at a specific rate and in a specific direction using your historical growth trend because your growth trend was in the past and not the present, or the future. He could have only made a projection based on your historical growth trend. Got it now?
Additional related questions:
D) How many midgets have you seen in your lifetime?
E) How many children world wide die from XYZ causes long before they ever reach age 10?
F) What promise did your Father have that you would reach age 10 absent some kind of ABC physical deformity that stunted your growth?
G) How many variables were completely
UNKNOWN to your Father when he was plotting your height progression from year to year?
Your Father would have been restricted by his humanness, just like you are today. He would not have been able to bet on your historical height trend and you are not able to “trade” the historical price trend today. All your Father could have done was
estimate his best guess that you would even be ALIVE to see your 10th birthday, let along how tall you would have been on that day. Case in point and made crystal clearly using your OWN example.
TheBramble said:
… Most of us out here would could that a pretty good Trend line.…
Correct! You got one – wow! Yes – you would be able to plot a really good trend line just like any 5yr old could by simply looking at what your Father had
already done with his measurements. At no time, however, would anyone on the planet be able to place a bet on January 1st, 1950, that you would even be alive on January 1st, 1960, based on your growth to January 1st, 1960, because January 1st, 1960
FOR THEM had not occurred yet. This is so simple and easy to understand, geepers.
TheBramble said:
… You could extrapolate where that line MIGHT go, and that would be constructing a projection,…
Hello! Anyone home? What do you think I’ve been saying all this time! This is ALL that one could do with the
previous height recordings that your Father took in
his past. His physical presence in the past is separate and fully distinct from your demonstrated historical growth trend at each point where he took a measurement. This appropriately separates the physical instance from the logical extraction. This is too easy for you to be missing like this.
TheBramble said:
… but constructing a projection of WHAT WE ALREADY KNOW. That is, what already exists. That which is in plain sight. That at which any old stick could be shaken. You could roll a dead parrot down it.
A “projection” and nothing more. What you fail to understand is that the
projection does equal the trend. Here, allow me to spell this out for you plainly and vividly as if I have not already done this a thousand times already:
P R O J E C T I O N <> T R E N D
They are NOT one and the same thing. They may or may not be closely related on ANY Day trade. The trend is in the
past – that’s yesterday’s news. The trend
IS the past by physical and logical definition. It cannot be a
present and/or future event because it MUST have ALREADY happened. Therefore, (for the millionth time) you cannot trade that which is ALREADY KNOWN and IN THE PAST. You can ONLY trade a Projection of that which is ALREADY KNOWN “about” the past. Which I have said now many times over.
TheBramble said:
… It is your unfortunate lot to have come head-to-head with one of the few of us that survive to this day. Yes, none other than one of "The Knights that like to say 'TREND!'".
Not if you don’t understand the awesomely simple concept that you cannot execute on that which is already in history – LOL! I’m the original StealthTrader. I created the concept years ago – so what. I fully understand the difference between the past, the present and the future – which you have firmly demonstrated severely difficulties with and I did that long before I invented StealthTrading.
TheBramble said:
… While i'm on the subject of basics...and I'm only just warming up...
If you call the fact that you are unable to substantiate any understanding of the fact that the past is the past, the present is the present and the future is the future, then I would say that you need a lot more warming up there guy!
TheBramble said:
…...What do YOU call that imaginary level on a chart that the price keeps bumping up into and falling back away from from a few times? Is that in the future too. Is the price less likely or more likely to bounce a 3rd time if it's definitely already bounced twice?
Basic TA practitioners and those that don’t fully understand what a TCD is all about, call those imaginary lines in your world: Resistance and Support. But, this is the very point. This is the ancient and archaic generalizations of the masses that simply don’t have any better tool for describing price behavior and measuring its pulse.
It is most certainly not the historical trend because it has no physical instantiation anywhere in the universe. It is a pure psychological level at which the majority of the market at “that time” has already decided that price will go no higher, or no lower. In today’s modern market, with electronic trading now pervasive in just about any country (you could take a laptop with a wireless satellite connection and trade from the some of the most remote regions on earth these days), most of those imaginary lines in your world are augmented with electronically triggered executions that either support the “imaginary lines” or move them away to some degree.
So, this is nothing more than a straw man argument and it is not even a well constructed straw man argument. These are psychological elements of the market, not historical trends. One has nothing to do with the other – a total non-sequitur in all its glory.
Whether or not “price” bounces off or plows through one of those imaginary lines in your world is EXACTLY the problem you have as you have NO WAY of knowing, LOL! However, a serious TCD trader (one skilled in the art of TCD interpretation, or one having built a system based on TCDs) has no problem whatsoever carrying a trade through an imaginary line of resistance and/or support. Why? Because the TCD Trader understands that no financially traded market can go anywhere (long or short) without Omega (Magnitude) and TCDs (Direction).
If your imaginary line of resistance or support gets in the way of a large scale TCD, then you will either be left out in the cold having missed your entry, or you will be wondering what the license plate was on the MACK Truck the just ran over your trade, because when a large scale TCD starts to move, nothing short of “adverse” news itself will stop it, about 100% of the time.
That is why understanding what a TCD is, how it works, why it works, and WHEN it is about to launch, trumps anything that you could ever imagine being important about a simple minded “trend”.
The “historical trend” is your friend UNTIL it comes to an abrupt end. TCDs go inside that trend to explore WHEN that historical trend has the highest probability of becoming your worst nightmare!
Take if from my last two long-term trades. My Swing and Outlook trades go toasted all because of an
Annual TCD Long that had already initiated back on January 1st, 2006. Because I did not have the Annual TCD data in my system, my Swing and Outlook trades were way out of balance and leaning too strongly to the predictive side of the system’s signal producing algorithm.
As a direct consequence of trading
against the Dominant TCD/Trajectory on a
long-term basis, my Swing and Outlook got hammered into the ground – right where they belonged. You don’t hear me crying about it, because I now fully understand exact why it happened AND I have the data to insure that it does not happen next January 1st, 2007.
You are either trading projections taken from TCDs, or you are guessing. There are NO other trajectories to trade while the active TCD is on the move. You either move with it, or you are toast.