Flow Indicator

Public discussion of the methodology

Moderators: ted, mmaxwell

Post Reply
Trader Question
Posts: 709
Joined: Thu Oct 09, 2008 7:31 am

Flow Indicator

Post by Trader Question »

My definition of energy is formed motion. I also hold the view that the form of motion can be: ordered (flow), entropic (disorder), or a standing wave (stopped). My current understanding is that there is a state change sequence from ordered -> entropic -> standing wave -> entropic -> ordered. Formed motion can't go directly from ordered to standing wave for example. It must go through entropic form first.

Example: Car flowing down the road (ordered), Concrete wall (standing wave), car body contacting wall will deform (entropic) before the car stops. The car does not go from ordered directly to standing wave (stopped) without some disorder occurring to the original car form.

Anyway, after watching charts in real time for 18+ years I have noticed that there is a price dispersal (entropy) just before the high and low price of a particular time period. Mapping Drummond Geometry to my energy model as: the Lines 5-9's, 6-1's et all, are standing wave locations and as price flows toward the standing wave it will have to go through a dispersal (entropy) before reversing direction. So no dispersal, price should move on past the weakening standing wave. Quantifying entropy would yield a way of codifying the state of the price flow.

I don't know the detailed algorithm for the current Flow Indicator, but I would design it so that the bars would have both the up and down flow condition displayed simultaneously with the contact point of the two colors showing where the tipping-point is currently located (relation to PLdot position? -- something to check out). Dark green for bad flow up/bright green for good flow up, and of course dark magenta/bright magenta for the down flow state. Sounds complicated, but actually pretty straightforward in EasyLanguage.

To answer your question, yes I see the potential value here. I feel that a functioning Flow Indicator would firm-up anticipation of price flow and get the trader into the trade before the sheeple got on board. So the sooner it presents the flow indication the better in my view.

Site Admin
Posts: 779
Joined: Sun Apr 27, 2008 10:52 pm

Re: Flow Indicator

Post by pldot »

I tend to think of the 5/9s etc as latent opposing energy of varying strength. Energy of the move toward the 5/9 (or whatever) varies in strength as well... the two meet and the stronger overcomes.
The idea of quantifying the nature of the entropy phase holds some interest.

Yes, would be interesting to display that way, I can see that it might be possible. Will mull it over.

From Charlie:
For R.H., and the idea of 'ordered>entropic>standing wave',
yes, did have a primitive TS indicator changing colours as a paint bar, as his 'entropy' started to develop ( basic P&L, one time period only however). Entropy of course is created on a time period by the early entropy perhaps on the higher time period, and the lower time periods to the one being observed, of course, the entropy is well on its way moving to 'standing wave',, and even further down the time period chain, the lower lower time periods are already out of entropy, into ordered, as the time period under focus moves out of entropy into early stages of 'ordered'.
Post Reply