I was just listening to the file Charlie posted in 2002 in reply to the statement that the use of the word energy is incorrect to use with the PL Dot. While that may be literally true and yet this person may have been missing the forest for the trees, I can offer the following alternative viewpoint. I like to think of the PL Dot as a dynamic equilibrium point, and the 1/1 envelope as a concurrent dynamic equilibrium band. When prices move sideways, the PL Dot is right there in the middle of each bar s range and the envelope contains the highs and lows, for the most part. When a c-wave occurs, prices move out of equilibrium and the dot and envelope move to catch up, i.e. dynamically adjust. The farther prices move away from the dot, the more out of equilibrium they are, and the more likely they are to move back to equilibrium, or refresh. In this viewpoint, it is important to note that equilibrium is not the normal state of the markets, but more an axis around which the markets oscillate. For prices to stay at true equilibrium, trading would have to occur at one fixed price.
It s just another way of saying the same thing, but it might click for some people better than the push/refresh metaphor. Maybe people like me, who tend to over-think things.
My review of the lessons is paying off, as is Charlie s advice about tickitis. Thanks for an amazing body of work.
JK
Energy and the PLdot
Re: Energy and the PLdot
Delighted that things are working out for you. Let the good thoughts roll!