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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Psycho-Social who wrote (83971)	9/28/2003 6:59:02 PM
From: David W. Taylor	Read Replies (1) \| Respond to of 99985

No, the notion is not determinism. Far from it. I wish it were that easy! The notion is that the limbic systems of a large population of emotional herding animals causes the masses to express their fear in waves. The fear, greed and so on combine to cause waves that are predictable in magnitude and direction. The waves follow a common fractal pattern, which is based on the Golden Mean (1.618) and thus become predictable. The nature of the math follows the Fibonacci sequence, which they teach in school. This happens a lot throughout nature. All kinds of things follow similarly structured patterns. Why should the emotional levels of a large population be any different from the pattern of how trees grow? We are nothing special in the cosmic sense. If I thought that Elliott was a simple premise with predetermined outcomes, I would be as sceptical of it as you are. But we are predictable. The only leap that you have to make is that the waves cause the news rather than change because of news. Obviously at the smallest degrees of wave news and events will cause fluctuations in the overall emotional temperature if you will. These small changes are damped by the larger pattern. The big thing to grasp is that, over time as a large group of herding animals, we communicate our emotions to the herd via our actions. As people buy and sell financial instruments there are enough transactions to cause the wave to change. The waves then cause the news. David