Does price halt at an extreme and then return to the PLdot because it has simply exhausted the energy which provided its initial push away or is there some kind of counter-balancing or contravening energy at the extreme which causes the market to halt and reverse?
The material in Lesson 2 seems to suggest it's the 2nd choice; but what kind of energy is this?
Lesson 2 talks about market shifts from traders reacting to "external" energy flows--external to what? And elsewhere about the lines being affected by energy existing "intrinsically" in the market. How can the energy be both external and intrinsic? It's confusing to me.
Lesson 2
Re: Lesson 2
This is an interesting question.
Prices stop and reverse because they encounter an opposing energy that has grown stronger, and the balance of power shifts. Energy is always present in the market... and always or almost always manifests itself in two in two directions at once. New energy is fresh and strong, and grows weaker as the dot push or dot refresh grows older and moves further from its inception. There is a constant tension between energy in one direction and energy in the opposite direction. We say that each time frame has it's own energy, thus each Pldot has its own push and refresh energy.
What are we really talking about when we speak of energy?
In the market we are talking about buying and selling, thus we speak of money flowing in and out of the market, and of the decisions of many tens of thousands of people simultaneously making decisions about their hopes and fears , taking actions by putting money on the table. Some have large capital to work with, thus more power, and some have less.
It is the human decisions that cause this energy to flow or no, and these decisions are a mix of emotion and intellect and something deeper, perhaps we could say the roots of emotion in instinct, or perhaps it is something more.
Think about a herd of animals, maybe the vast carribu herds... these animals like to be together... when they all start to move in the same direction, they are all swept along. Yet when one animal gets too far away from the "natural" space that it feels when it identifies with the herd, then it moves back into the group. Humans have similar qualities, not exactly the same naturally but distinctly similar. This is one type of energy that we metaphorically speak of as dot push and dot retrace...
Now imagine many different groups of heard animals, with different migratory instincts, different goals, different bank accounts (if caribous have bank accounts) and so forth. This swirl of activity, partly reacting to deep emotion, fear, greed, need to be part of a group, interest in being a separate adventurer, and so forth -- this is the market as we experience it.
In our research, reading, and explorations, we see many, many examples of cyclic, or rhythmic movement, or testing of constrained boundaries before breaking into new territory... things that are familiar to us in the markets, but the examples are from biology, or medicine, or history, or cosmology, or geology. We thus hypothesize that these energy flows come from very deep and universal principles of the universe. But it is not necessary to subscribe to these larger theories to understand market lows as a reflection of deep human emotions, and the movement of heard behavior, and of greed and fear, the conventional understanding of market
External vs Internal energy... where does the energy of the herd come from? Inside each animal or from the group outside the animal? I would say that humans are not different. From the individual animal's standpoint, is this internal or external energy? both, I would say.
Prices stop and reverse because they encounter an opposing energy that has grown stronger, and the balance of power shifts. Energy is always present in the market... and always or almost always manifests itself in two in two directions at once. New energy is fresh and strong, and grows weaker as the dot push or dot refresh grows older and moves further from its inception. There is a constant tension between energy in one direction and energy in the opposite direction. We say that each time frame has it's own energy, thus each Pldot has its own push and refresh energy.
What are we really talking about when we speak of energy?
In the market we are talking about buying and selling, thus we speak of money flowing in and out of the market, and of the decisions of many tens of thousands of people simultaneously making decisions about their hopes and fears , taking actions by putting money on the table. Some have large capital to work with, thus more power, and some have less.
It is the human decisions that cause this energy to flow or no, and these decisions are a mix of emotion and intellect and something deeper, perhaps we could say the roots of emotion in instinct, or perhaps it is something more.
Think about a herd of animals, maybe the vast carribu herds... these animals like to be together... when they all start to move in the same direction, they are all swept along. Yet when one animal gets too far away from the "natural" space that it feels when it identifies with the herd, then it moves back into the group. Humans have similar qualities, not exactly the same naturally but distinctly similar. This is one type of energy that we metaphorically speak of as dot push and dot retrace...
Now imagine many different groups of heard animals, with different migratory instincts, different goals, different bank accounts (if caribous have bank accounts) and so forth. This swirl of activity, partly reacting to deep emotion, fear, greed, need to be part of a group, interest in being a separate adventurer, and so forth -- this is the market as we experience it.
In our research, reading, and explorations, we see many, many examples of cyclic, or rhythmic movement, or testing of constrained boundaries before breaking into new territory... things that are familiar to us in the markets, but the examples are from biology, or medicine, or history, or cosmology, or geology. We thus hypothesize that these energy flows come from very deep and universal principles of the universe. But it is not necessary to subscribe to these larger theories to understand market lows as a reflection of deep human emotions, and the movement of heard behavior, and of greed and fear, the conventional understanding of market
External vs Internal energy... where does the energy of the herd come from? Inside each animal or from the group outside the animal? I would say that humans are not different. From the individual animal's standpoint, is this internal or external energy? both, I would say.
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Zen Trader
Re: Lesson 2
Thanks, Ted, for taking the time to answer so comprehensively.
Your answer itself is worth some study and pondering. That's one of the things I find so intriguing about DG thus far--not exactly a Zen koan, but similarly elusive while touching what could only be described as profound.
Your answer itself is worth some study and pondering. That's one of the things I find so intriguing about DG thus far--not exactly a Zen koan, but similarly elusive while touching what could only be described as profound.
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Trader Question
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- Joined: Thu Oct 09, 2008 7:31 am
Re: Lesson 2
Please take a look at the upper diagram in lesson 2, Slide 37.
If I’m not mistaken, this upper diagram is intended to display the 6/1 Down line. If so, then on this upper diagram, it looks to me like the close of Bar 1 is higher than PLDot[0]. Should not the close of Bar 1 be lower than PLDot[0] for this to be a 6/1 Down line?
If I’m not mistaken, this upper diagram is intended to display the 6/1 Down line. If so, then on this upper diagram, it looks to me like the close of Bar 1 is higher than PLDot[0]. Should not the close of Bar 1 be lower than PLDot[0] for this to be a 6/1 Down line?
Re: Lesson 2
Yes, you're correct.
This is one of the glitches in the original lessons, it was a mis-placed graphic. You'll find a few more here and there if you proceed through the full course.
This is one of the glitches in the original lessons, it was a mis-placed graphic. You'll find a few more here and there if you proceed through the full course.