Is the Cauchy difference a precursor to a reversal and/or correction? - page 8

 
Maxim Kuznetsov:

Hasn't anyone tried so far to write down this very difference on a piece of paper, take the derivatives and get the extremes (minimum/maximum) ? and understand what they depend on...

no one seems to have studied anywhere...
There are no derivatives in the usual sense. If only price differences were investigated, there would be a derivative, which has been ploughed through and through.
 
Yousufkhodja Sultonov:
There are no derivatives in the usual sense. If only price differences were investigated, there would be a derivative, which is ploughed through and through.
The minima/maxima are places where the derivatives turn to 0. And they are there. You are looking at functions (or rather one that is the difference of the other two).
 
Yousufkhodja Sultonov:
There are no derivatives in the usual sense. If only price differences were investigated, there would be a derivative, which has been ploughed over and over.
The absence of derivatives is in the field of fractals, which is not the case here :-)
 
Maxim Kuznetsov:
The minima/maxima are where the derivatives turn to 0. And they are there. You are looking at a function (or rather one that is the difference of the other two).

The study of the derivative of this complex function is a subject for further research with interesting conclusions, but, as yet, there is no time for that.

The graph of the derivative of the Cauchy difference (K) is calculated and looks like this:





 

The Euro/Dollar is at a crossroads, the decline has been halted, but it won't be long before we find out where the indicator curve and price level will go https://www.mql5.com/ru/charts/5617036/eurusd-h1-metaquotes-software-corp:


График EURUSD, H1, 2016.08.14 21:39 UTC, MetaQuotes Software Corp., MetaTrader 5, Demo
График EURUSD, H1, 2016.08.14 21:39 UTC, MetaQuotes Software Corp., MetaTrader 5, Demo
  • www.mql5.com
Символ: EURUSD. Период графика: H1. Брокер: MetaQuotes Software Corp.. Торговая платформа: MetaTrader 5. Режим торговли: Demo. Дата: 2016.08.14 21:39 UTC.
 
Yousufkhodja Sultonov:

The Euro/Dollar is at a crossroads, the decline has been halted, but it won't be long before we find out where the indicator curve and price level will go https://www.mql5.com/ru/charts/5617036/eurusd-h1-metaquotes-software-corp:


Yusuf, don't bother with that - move both indicators back half a period and see what they actually show.
 
Maxim Kuznetsov:
Yusuf, don't torture yourself like this - move both indicators back half a period and see what they actually show.
How do you do it? And which two indicators?
 
График EURUSD, H1, 2016.08.14 22:01 UTC, InstaForex Group, MetaTrader 4, Demo
График EURUSD, H1, 2016.08.14 22:01 UTC, InstaForex Group, MetaTrader 4, Demo
  • www.mql5.com
График EURUSD, H1, InstaForex Group: 4
 
Yousufkhodja Sultonov:
How do you do it? And which two indicators?

Both three - SMA,GMA and their difference. In indicator properties set SHIFT - half-period shift (negative).

:-)

 
Iurii Tokman:

I think it shows more attenuation

https://charts.mql5.com/12/158/eurusd-h1-instaforex-group-4.png

Dropping down to minuscule values more or less shows a flat. It is worth to see what happens in sideways, maybe a sideways movement start detector will come out - logically SMA-GMA would also be typical, but we need a non-linear scale in the indicator or somehow to normalise it to be clearly visible.
Reason: