jrtrading wrote:MightyOne, is it possible you can explain more the X/O pattern you posted on Tuesday?
I see you posted more about it in the TRO TRADING VIDEOS thread just now, which helped.
What does the smaller [X/O] versus the larger [X/O] represent?
The past and the present are moving towards zero.
As things become more expensive ($3, $4, $5, $6, $8, $10, $12, $16, $20, $24,...) the value of the past is only
$3/$24 (1/8) what it is today so it has "faded" going into the present (the moment before change).
Let's say that you were gambling in a home game of Pai Gow (tiles) & you could bet anywhere from $1 to $100.
The guy betting the dollar would, in theory, have the advantage because he is getting more action when he has the edge.
But what would happen if the opponents steadily increase their minimum bets? They would march the past/present towards zero until they gain the upswing and then they would revert back to minimum size to expand their lead.
The guy betting just $1 will not realize his "edge" for a thousand lifetimes.
Now let's say that you were trading and could wager $30 to $3000 per line and win greater than even money...