In making the first post on the presence of the trapeziodal patterns in the XJO and their use in identifying CITs', I had not expected the response to the post.
Among some very relevant question posed was this - whether the trapeziodal patterns were repeated across a whole database of XJO data. In other words, was what I posted a "fluke shot" restrained to a limited population sample, so that it was not applicable or useful for trading? ( Though of course it was highly useful for entertainment purposes!:))
Coming from someone who is not mathematically knowledgeable (this, according to some posters - there wasn't any maths in that post, "a pretty picture wasn't maths "), and lacking " understanding" ( according to another ), I might be forgiven to think we have to go beyond just trapezoidal patterns or any other patterns at all.
So I'll like to take this opportunity tonight to suggest that the market - the XJO - has a memory - it has seemingly a good memory of harmonic moves and remembers its swings in both time and price!
To avoid being classified as loonly, and committing a further sin of blasphemy against technical analysis, I thought I better post a chart again.
Instead of trapeziums or gartleys, or bats or butterflies, you can see that the XJO remembers the most basic pattern of all - the AB=CD harmonic move. Starting from May 2010, you can see that the XJO kept displaying this elemental swing move, so that leg AB is equal to leg CD both in price and time !
Since I didn't learn the correct maths stuff (sic!) and could only post a simple chart, I have merely marked down the various swings where the XJO kept stubbornly displaying this pattern, much like a long winded broken record, right up to Feb 2011. The trader, ( both maths and non-maths endowed) might be able to trade the XJO successively eg buying at point C, and selling ( and sell short ) at point D, knowing the target as AB=CD at the various parts of the chart which I had marked.
The XJO also showed us a good sense of symmetry where LE=EG as well. ( It didn't necessitated a high degree of advanced maths for me to recognise this though, I must say... ).
Being naive, I tend to think a trader might be able to make use of the knowledge that the XJO has a memory of its swings both in time and price and be able to trade this elemental pattern profitably, as the XJO continued to rely on its past memory to display the pattern again and again.
Now fast forward, past the LE=EG symmetry, we find the XJO displaying its first AB=CD pattern again but in the reverse direction. Now, because I'm not the mathematical genius or analyst who know when maths is maths, I'd like to ask this:
" Is this the first sign of a foldback pattern?...and will the XJO now repeats from memory, this swing in this direction ( downwards ), opposite to that prior to the symmetry of LE=EG?"
Meanwhile, while those who know what is maths and are able to compute those amazing figures can figure it out, I'd like to just go back to my simple charts, and try to read a bit more and to gain more "understanding" of all things technical, and perhaps then I might be able to post charts with the correct maths and all:(
May the best prices be yours for the rest of the week,
dascore
PS. Perhaps I had better follow the style of the grandmaster maxi48 who posts in his short, terse style...but then being found lacking in the maths dept, I better maintain a prose posting style until I gain the mastery of all things mathematical and become more enlighted. Cheers!
(20min delay)