Just Woke Up — Can't Do the Afternoon Analysis

2007/7/20 8:26:20

Just woke up. I have something right after the market close this afternoon, so I won't be able to do a market analysis. Can't hold the music session either since I'm away. Just scanned through the replies — many readers' answers are correct. From the line segment perspective, those two charts are fundamentally different. But if each individual stroke within them is not a stroke but a line segment, then the two charts are no different. This was to illustrate that strokes and line segments are distinct from hubs and trend types. Strokes and line segments are used to construct the smallest-level hubs in actual trading. Within strokes and line segments, you can't even speak of hubs — you can only use methods analogous to hubs and the corresponding divergence intensity to confirm the completion of strokes and line segments. But this is merely analogous — it does not mean that strokes and line segments truly contain hubs or divergences. Strictly speaking, it is incorrect to treat line segments as the sub-level of the smallest-level trend type. Of course, in a non-rigorous sense, you can analogously consider them as such, but the two are fundamentally different. These two charts precisely distinguish this difference.

Please note the distinction between the existential significance of the recursive definition of hubs and the operational significance of fractals, strokes, and line segments. Of course, if we could find the actual transaction of every single executed unit (note: not the "strokes" mentioned above, but each actual executed unit in trading) and then apply the recursive definition, we could construct the entire sequence of trend types and hub levels. But this has no practical operational significance — it's purely theoretical. Fractals, strokes, and line segments do not violate the recursive meaning of hubs; they merely use a method to identify the smallest-level hubs and trend types that have operational significance. Everything after that still follows the recursive definition. If you have some understanding of mathematics, you'll know that the two are identical in recursive form — both are an = f(an-1). The only difference is the pre-given a0. In pure theory, this a0 starts from each executed unit in trading, but this has no practical operability. Therefore, fractals, strokes, and line segments are used to determine this a0. From the standpoint of the recursive procedure, there is no essential difference between the two. Actually, this is the simplest mathematics — aside from the Confucius Man types, everyone in the universe should understand it.

Also, when this ID draws charts, it's just freehand sketching. But the market's chart is the result of the composite force — not something anyone can casually sketch. To truly grasp this ID's theory, "no prediction, only observe the present moment" must be the first thing you remember.

I hear butter crabs are in season, but sadly there's no chrysanthemum wine to "toast shadows and make three." Signing off, if there's time over the next two days, see you then.