Markets and Maths

aricho

suppose the "elliot wave structure" and movement in markets is fact and causes a vibration everytime (a vibration is a change in price due to a factor, here being the range).

The elliot wave structure says that markets move in 5 waves as shown below, one up, one down ect till the top, where an ABC happens (not all the time, but suppose that for now).

sometimes you can predict a vibration by using the range and fractions of it on the way down, and you can predict a target by using 1+ the fraction.

An example of this is in the 2nd picture where the market bounces off the 1/4 retracement (3/4 of the range from the bottom, 1/4 from the top.)

We can look at trends over many different time frames. Now look at C as the low, instead of A.

Is this equation valid?

[tex]{c} = \frac{x}{y}\times{r} + {p}[/tex]

that was the first time i've ever done one of those so if it doesnt work i'll try it again.

in the equation, [tex]\frac{x}{y}[/tex] is either 1/2, 1/3, 2/3, 1/4, 3/4, 3/8, 5/8 or 7/8. As you see this would make many different prices.
r is the range between the top of wave 5 (w5) and P.
the result is added to P to give the level (price) of the vibration.

This just happened recently, where the market had a low of 3927 and a high of 4322. The range was 4322-3927=395. So a one quarter vibration is 3/4 X 385 + 3927=4223 (EXACT VIBRATION) (S&P200 aussie)

could the above formula be used to produce vibration levels? or is there a better equation?

Thanks

Attached Thumbnails

   

EnumaElish

Yahoo search on "elliot wave structure" returned (inter alia):
http://www.ensignsoftware.com/tips/tradingtips19.htm (no idea what it's saying but the graphs are way cool)
http://www.trade2win.com/boards/arch...hp/t-9950.html
http://www.themarketmessenger.com/Pr...scontents.html
Good luck!