Saturday, September 11, 2021

Applied Physics - Same principles and concepts different NAMES

In one my Physics class, an example of throwing a ball into the air. At the maximum distance from the ground is the end of the UP move where the next obvious move is the down path. I am not going to discuss about VECTOR (Mechanics) but the applied concepts. At the peak we can only determine the AVERAGE speed/velocity. The details of the forward thrust rising motion subscribe to the law of diminishing return (dy/dx). The Y= Price and X = Time. The highest rate of change (dy/dx) is NOT at the peak of the distance but SOMEWHERE in between the take off point and the peak from the ground. What happen in reality is TAKE-OFF, ACCELERATING, STEADY STATE, DECELERATION and CHANGE DIRECTION.

ACCELERATION means - same direction but increasing velocity

DECELERATION means - same direction but declining velocity     

The only way for us to tell if a moving object has change direction is that IT HAS ALREADY DONE SO. We are not going to debate why such action happen BUT we are going to understand the need to use tools to track such action.

We can develop or use existing tools/indicators that comes with the charting software to measure the changes to VELOCITY (NOT MOMENTUM) both have different formula definitions in PHYSICS. In general, the changes in velocity can signal POTENTIAL underlying changes which we should be aware and prepare. BUT the key is what do we use to determine to CONFIRM the directional change? Changes in velocity DOES NOT confirm DIRECTIONAL change. It is the CHANGE in DIRECTION of the moving object that CONFIRMS.

The most obvious visual before our eyes is to see the CHANGE happening as we record n plot the chart. The task is NOT to predict when the directional change is going to happen BUT to track when the change HAS happen (confirmation) and act accordingly.

Ignore all the financial news in media. Just look for simple tool to track where the price directional trend is moving and to confirm the directional change has happened. We do not need to determine the exact TOP and BOTTOM. Let me repeat - WE ONLY WANT TO KNOW AND CONFIRM THE DIRECTIONAL CHANGE. We do not want to act prematurely. We only want to act appropriately.

There is NO complex formula like F=ma or mgh or 1/2(mv2) or E=mc2 or sine O or cosine
O, merely plain simple drawing on the price charts to visually confirm the changes.

Many of us has walked the path of complex financial formulae and theories that we focus on the trees and lost sight of the forest. 

When we are mentally pre-occupied with the notion that complexities matter,  we work in a paradigm that we lost our compass n GPS.            

 

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