Dec

11

The Eskimos have 26 names for snow. They live in it, are immersed in it, and die by it. Sailors have the Beaufort scale and dozens of names for the water, wind and weather conditions. Musicians have notation for pianissimo, crescendos, fortissimo, contrapuntal, waltzes, marches, for time signatures, keys, clefs, rhythms, shuffles, triplets, all as a way to record and communicate and create. It is a way to predict, to communicate, teach, understand. The market has different and changing conditions. We should create a better standard classification in terms for the market, a Taxonomy of the Market, a periodic table for the markets.There are the Opens, the mornings, the closes, pre-market, pre announcement, announcement, ranges, trend days, narrow ranged days, wide range days, no change days, pre holiday days, days of the week, quiet markets, slow markets, fast markets, panics, bull runs, expansion bars, gaps, closed markets, reversal bars, Z days. Each can be quantified or qualified in a manner of choosing, but rather than numbers, a good name is always good to have in mind, especially where survival is at stake, in order to know what equipment to bring, what techniques to use, how to avoid danger, how to communicate with each other, to teach, to learn. Any scientific discipline should have a good taxonomy. The process itself of classification gives insight and requires hard analysis and understanding. Seeing how the conditions change from one to the other, when, and how, are steps toward a more scientific approach to the markets rather than the typical hand waving we eschew. Please suggest other possible classifications.

Larry Williams mentions:

Price can open in one of four zones:

Open < prior low
Open > prior low < prior close
Open > prior close < prior high
Open > prior high

It does matter.


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