Market theory - page 56
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Damn it, all my life I've been counting the support line below the price and the resistance line above the price, or I don't understand something...
The people did not understand the market and did not believe it, but frantically searched for a pattern that happened to become one for a short period of time. People did not understand the market and, without believing it, frantically searched for some kind of pattern, which happened to be the case for a short period of time and then behaved like a random value. The proverbial "resistances and supports" are from a series of such "patterns". Well, they guessed about the inevitability of Bulls and Bears existence, and that they fight each other. They could not understand the mechanism by which they figure out their relations. Really, was it possible to understand on the basis of reasoning that they are controlled by the Lion and the Buffalo, who, sitting in the middle of the market, constantly consult with each other and work out the control actions by regulating the distance between them, which are the signals to Bulls and Bears by the complex chain of formulas given on the 54th page? Moreover, the Lion and Buffalo themselves, receive orders from the Dragon and, would you not believe, from the captive Antelope, because you took her out of the market by paying for her, but the market remembered this moment and did not deprive the Antelope of her authority as the Head of the market. The situation, for the trader, is complicated by the fact that, the Dragon has three more heads in the form of Wolves, Wolfs and Volchats, telling the Dragon about the trader's spending status. In turn, the heads of the Dragon and the Antelope receive information from the Devil (Maximum Virtual Market Turnover) who monitors liquidity in the market along with the Queen of Markets (Market Elasticity). And this whole mechanism is controlled by Her Majesty the Price herself. So it turns out that, like an intelligent being, it governs itself. It remains for me to find out, by looking into the soul of the Queen, and to understand how she becomes reasonable, by going step by step through the whole algorithm, and if I fail to do so, posterity will do so.
You are so engrossed in your theory that you are completely unable to understand what you are trying to comment on.
You constantly in your posts operate with the terms "Bulls"/"Bears" and you give the impression that you do not understand who in the market is called "Bears" and who is called "Bulls". My post and khorosh's post explained it to you. It's not a theory, it's just definitions of "Bulls" and "Bears" and khorosh showed why they are so called.
"There's nothing to "spread" about! :)
You are absolutely right, there is nothing to dissemble, as there was no theory itself. It is human nature to make mistakes, my apologies I, just paying tribute to tradition and trying to make it easier to understand the function and purpose of my characters, gave them two of them appropriate names, although, it was difficult for me to make this decision, as they should have been chosen from the same family of animals and generated from the same formula by changing the + sign to - before the discriminant in their formula, where the Lion and Buffalo are present, invented in order to control the Bulls and Bears. Now, I am forced to follow only the logic of my market theory, without regard to the history of the problem and decide to rename all my . market characters. So:
1. the Buffalo will be renamed the Leopard from the feline family, Panther genus, as will the Lion;
2. the Bull to the Tiger;
3. Bear to Jaguar;
4. Dragon - into Panther, as head of the genus;
5. The Wolf family (Wolves, Wolfcats and Volchats), symbolising variable and fixed costs, will remain, but, with the possibility of their rebirth into the Hyena family, devouring everything in their path all at once, including the bones of their victims, including Deer (profit) and squeamish only Moose (loss) and Antelope, when acquired by the trader, incorrectly, in the form of an Elk, which in his hands will never grow to a Deer, it (the Elk) can only grow to a large Moose. I will introduce you to the formula and the circumstances of acquiring an Moose cub later.
In the case of the market I began by finding out the aims and tasks of the market participants. It is natural to assume that the main goal of market participants is to make a profit, profit or convenience, which, indirectly, can be referred to finding ways of making a profit. Some market participants, including organisations, aim to maximise profits, so the object of the study was to identify patterns of profit making in commercial activities.
Profit (P) is defined as the difference between income (E) and all types of costs, which include the costs of production, purchase or purchase of goods (Ptov), other variable costs (Pper) and fixed costs associated with the sale of goods (Ppost):
P = E - Ptov - Pper - Ppost (1)
or in our view:П = Elephant - Rhinoceros - Wolves - (Wolves + Wolves)(1а)
This classical profit formula along with its simplicity, obviousness, fundamentality and omnivorousness has one, essential disadvantage - it does not give an opportunity to study the trading process depending on the selling price in the market within the whole range of price changes using the limited amount of actual data on changes of income and other variables included in it.
The reinterpreted form of (1) is as follows (in our variable designations):
P = (1- c)*E*/Lisa*(Fox^2 - 2*Lion*Lisa + Leopard^2) (2)
Where:
Elephant = E - income or gross income;
c - elephant, part of Elephant, c = Pper / Elephant - share of variable costs in income D;
Rhinoceros = Ptov; (the steepest animal after Elephant);
Devil is the virtual income of the market for a given, traded, commodity, indirectly estimating the maximum, virtual, market demand for a given commodity;
E - elasticity of income to price:
Fox - Market Queen - current (actual) price;
Lion = 1/2*(Panther + Antelope + Wolves - (Volchits + Volchats) - market price (so far called);
Panther = - Devil/E - the marginal price above which the product becomes unattractive in the market, the upper limit of the market;
Antelope - purchase price that could turn into a Deer (profit) or into an Elk (loss) during trading, the lower limit of the market;
Wolf = c/(1-c)*Aptilope - the price of variable costs (commission and swap);
Volchata = - Ppost/E - price of fixed costs (spread);
Volchats = c/(1-c)*Wolves - increment of Volchats due to the presence of a Wolf;
The Wolf family can degenerate into the Hyena family, devouring everything in its path, including the Deer, except the Moose;
Lion = 1/2*(Panther + Antelope + Wolves - (Wolves + Wolves) - market price (so far called);
Leopard = (Panther*(Antelope + Wolves))^0.5 - optimal price to maximize profit.
Jaguar = Lev - (Lev^2 - Leopard^2)^0.5 - lower break-even level;
Tiger = Lev + (Lev^2 -Leopard^2) ^0.5 - upper break-even level;
AfterI've achieved computer's coincidence of results of calculating profits by formula (1) and (2), as it is impossible to achieve coincidence of calculation results on the calculator due to the problem of digit capacity of variables.
By equating (1) to zero, we obtain the coordinates of the 2 break-even points as the solution of the quadratic equation included in the profit form, in the form of the break-even levels of the Bears and Bulls:
P = (1- c)*E*/Lisa*(Fox^2 - 2*Leo*Lisa + Leopard^2) = 0
Jaguar = Lion - (Lion^2 - Leopard^2)^0.5
Tiger = Lev + (Lev^2 - Leopard^2)^0.5
Now, (2) can be rewritten as: P = (1- c)*E*/Lisa*(Fox - Jaguar)* (Fox - Tiger) (2а)
We conclude that the breakeven condition depends on the level difference between Fox and Jaguar and/or Fox and Tiger .
By adding and multiplying the levels of Jaguar and Tiger, we see that Leo is the arithmetic mean and Leopard is the geometric mean of the levels of Jaguar and Tiger:
Lev = 1/2*(Jaguar + Tiger )
Leopard= (Jaguar* Tiger)^0.5
Renaming is your right, no one will argue with that. You want to operate with animal names, no problem.
Not only do you need to give names, but you also need to define these characters and describe the actions they perform in the market. For example, the character XXX pushes the price up (in common definitions "Bulls"), etc.
Why wait? Describe your theory as a whole, introducing concepts and definitions, formulating laws (without formulas, on a qualitative level). And within this model (theory) show its applicability in practice. This is the custom in the scientific community. You are part of the research community, aren't you?
I think the best way to present your theory is in an article on this resource. But discussion of the theory can be in a thread related to the article.
Only, I ask those present to participate more actively in this discussion, to correct the style and manner of presentation.
The fee will also be shared among those present?
the fee will also be split amongst those present?
We'll find a way to encourage them. It will be more than a fee. Probably the more astute ones have already guessed what it is all about. And if they haven't figured it out, it's a surprise for being active.