The issue of aging that philosophers have asked over the centuries is whether the movement is a product of the mind or the mind is the effect of motion (or idea). Excluding one another, depends, among other things related or not? Are they harmonious or discordant? With our two different fields in the analysis of financial markets, which are technical and fundamental, which is correct? Does the news (or events) to generate market movement was the planned event or in the subconscious of the price bars ever deployment of events
As traders are constantly looking for an edge or the means to anticipate and validate the price movements. The question is how can we measure the harmonious or discordant within the financial instruments? Are there measures that can be used to measure the psychology of market participants and rhythmic exchange of optimism and pessimism
The March 10, 2011 at approximately 11:00 am EST Associated Press reported that protesters had fired at Saudi Arabia (note: this item is marked [r] in the above graph). The fundamentalist could say that the unrest in Saudi Arabia was inharmonious (or discordant) with the crude oil is dramatic and vertical movement at higher prices or market participants to anticipate a possible supply disruption. Both statements pass the scientific method as observable and measurable evidence to support the claim. The claim that a technical analyst (5) Eliot impulse wave pattern had developed and was therefore time to look back a corrective ABC. This is also true scientific method. If the two cases can be proved with empirical evidence that was the cause and which effect the price action? We may never know. The fundamental question is “not an additional layer of existing analysis that can be used to identify the potential of a change in the mainstream or the psychology of the participants?
When we hear the music that evokes different feelings in different individuals. Take the first movement of the Moonlight Sonata of Beethoven as an example, some people produces a relaxing effect that induces others irritability and / or any other emotion in the spectrum. The key here is that the music evokes a feeling and a very subtle change, the person (or participant). If the idea of fractal “music” we find that music is essentially a measure of different proportions of the sound waves. For example, an “octave” is the interval between one musical pitch and another with half or double its frequency and therefore we have the ratio 1:2 or 2:1. The interaction of these waves with our eardrums (and therefore our psyche) induces emotional effects mentioned above. If music is the catalyst and is measured in fixed proportions (in a basic sense), why not these specific relationships that prevail in financial instruments
In music theory, musical scales of the core is called the diatonic scale or the Pythagorean scale. Intervals of 7 consists of the relationships shown in the chart on the right.
From a viewpoint of technical analysis that we have two key elements in the lists, this being the price and time. All other indicators are obtained as certain derivatives of these two elements. If we apply the same table diatonic ratios crude oil, both in price and time, what shows?
Measurement of the proportions or the musical intervals of initial turning points shows that, from the perspective of time, the decrease in the price and the subsequent announcement of the event occurring at the point in time associated with a “You” note and a price associated with a “Note”. The subsequent “reaction” to the summit crowned with news in a time relationship to “The” note and a price associated with an “F” grade. Therefore we can say that the time intervals or notes in the price and / or were in a state of harmony or discord in the psychological issues identified and there was a change in the mainstream.
Although you can never know or have an adequate response to the philosophical question of mind and matter, or is the cause or the effect of price movements of the addition of music theory to their strategy a commercial paints unique and profound picture of the song played in the unfolding action.
So there is order in chaos and harmony in discord? I think so.
Good luck with your operations.