EURJPY 4hr chart
Just an idea
Chart is two axis price and time, so price is function of time P(t)
But price is more like discrete variable for any time, not continuous
Can try to make a continuous variable by using moving average, EMA(t)
The intersection of moving averages sets direction for price trend
Moving average looks more like polynomial curve, can´t be approached as linear or cuadratic function, as a minimum it would be a cubic function EMA(t^3)
Stoch(t) normalizes price in 0-100 scale for a period t
If want to find maximum of EMA(t^3), would look for Stoch (t^3)
Also price exhibit prime number cycles, P(t), sometimes these prime numbers are a sum of cubes
If price exhibit cycles, then can be approached as a wave
And then can be decomposed on smaller waves with different frequencies (just like light, as physics analogy)
One possible set of theses frequencies(cycles) could be Stoch (t^3)
Stoch(8), Stoch(27), Stoch(64), Stoch(125), Stoch(216), Stoch(343),...
Just an idea
Chart is two axis price and time, so price is function of time P(t)
But price is more like discrete variable for any time, not continuous
Can try to make a continuous variable by using moving average, EMA(t)
The intersection of moving averages sets direction for price trend
Moving average looks more like polynomial curve, can´t be approached as linear or cuadratic function, as a minimum it would be a cubic function EMA(t^3)
Stoch(t) normalizes price in 0-100 scale for a period t
If want to find maximum of EMA(t^3), would look for Stoch (t^3)
Also price exhibit prime number cycles, P(t), sometimes these prime numbers are a sum of cubes
If price exhibit cycles, then can be approached as a wave
And then can be decomposed on smaller waves with different frequencies (just like light, as physics analogy)
One possible set of theses frequencies(cycles) could be Stoch (t^3)
Stoch(8), Stoch(27), Stoch(64), Stoch(125), Stoch(216), Stoch(343),...