MHB Optimizing Profit with Three Points: A Scientific Approach

[xNICK1]

Hey guys, I'm struggling trying to figure this out and need some assistance. Not sure if I'm in the right category or needing the angle or what. But the goal is to prove Ex.1 is much smaller of an angle than Ex.2 and to be able to use the formula on a universal scale.
Ex1: A=190, B=222, C=195
Ex2: A=200, B=222, C=210
Any thoughts or answers would greatly be appreciated
Thank you for your time and help!

 

[skeeter]

what are Ex1 and Ex2?

what “formula” are you referencing?

what do the values given for A, B, and C represent?

 

[xNICK1]

I don't know the formula I'm needing.
A,B,C= 3 points from a line from the stock market in order, where if B>A and C
So if a line goes up then back down then we grab the last 3 points and B=peak and middle, A=<b and before B, C=<b and after B

Thank you for the response, skeeter

 

[HOI]

No, A, B, and C are NOT points. A point would require at least two component (in two dimensions). Certainly to have an angle, you need two dimensions. You say these are "3 points from a line from the stock market in order" so I suspect that they are "y" values of an (x, y) point where "x" is a date or time. Without knowing those, we cannot talk about an "angle".

 

[xNICK1]

My apology,
Ex1: A=(5pm,190), B=(6pm,222), C=(7pm,195)
Ex2: A=(5pm,200), B=(6pm,222), C=(7pm,210)
like this?

 

[HOI]

Good! Now you can think of these as triangles.
In example 1 You have a triangle with vertices at A(5, 190), B(6, 222), and C(7, 195).
So side AB has length $c= \sqrt{(6- 5)^2+ (222-190)^2}$, side BC has length $a= \sqrt{(7- 6)^2+(222- 195)^2}$ and side AC has length $b= \sqrt{(7- 5)^2+(195- 190)^2}$.

Now you can use the "cosine law": $b^2= a^2+ c^2- 2ac cos(B)$ to solve for cos(B) where B is the angle where sides AB and BC join.

 

[skeeter]

Once you find the "angles", what does one interpret from them? Three points hardly seems to be enough data to make any valid conclusions/predictions ... :unsure:

 

[xNICK1]

Thank you very much Country Boy, I'm glad someone listened in school.
skeeter,
correct 3 points of the price definitely isn't enough data, but I wanted to test when its 3 points from an already proven profitable strategy that we run market bots off of. This could help compliment the strategy to improve profits as show in the example. ;)