Remember, we are trying to generate a definition that is very precise in its language, suitable for generating a flowchart so that a computer programmer could use it to write a program to trade a trend.
[B]In short, our definition must be extremely specific and we assume the reader is totally ignorant.[/B]
Using the subtrend idea, we a basically breaking down our analysis to the atomic level if you like.
Lets revise…
uptrend - higher lows, downtrend - lower highs.
trendlines with correct placement.
trendline breaks giving hypothetical entry and exit points.
efficient and inefficient trends.
subtrends - the fundamental building blocks of the trend.
I was going to mention signal to noise ratio. then you come up with efficient and inefficient trends which is sort of the same thing. Inefficient trends are noisy. Efficient trends are not noisy. Not sure of the exact mening of volatility but I equate that term with noise. Is there a way to measure the noise level, and subtract it to find the signal / trend? You don’t seem to be going in that direction but it seems like an interesting idea.
as for my earleir post, I’ve always been the class clown. sorry
In your chart where you show the little subtrends, the lines bisect the candles rather than lie along the bottoms or tops. If you do this with a larger trend then you are bisecting the subtrends making them half as large, thereby increasing at least visually the effeciency of the trend. But then that alters the definition of trend as it’s been established so far with the tops and bottoms.
Wheres I comes from, we all dont like dem sunday preachers dat take all the dang day long to preach. We like it when dey sez what dey gots to say and be done wit it.
In drawing a trendline we should try to make as many contacts with the price action as possible.
This is done to give the trendline meaning and relevance.
In the process of making maximum contacts we should mostly just touch wicks, but sometimes we might cut thro a wick and touch the lowest body part.
There is a certain subjective element in this, but if the trend is very efficient then it becomes easier to touch just the lower/upper wicks.
The main purpose of the line is to show visually that a trend is in place.
We are looking at 3 subtrends.
Each subtrend candle has a higher low (the wick).
They are numbered.
RC = retracement candle.
Note that the retracement candle is also the start of the new subtrend.
STUDY THIS!!
FC = forward candle.
This candle would be the 1st of a new subtrend except that it is interupted by a retracement candle.
Special note.
The candles 5 and 6 in the chart appear to have equal lower wicks.
But I have magnified the chart in the GFT program and measured them and they are not equal.
Candle 5 is lower than candle 6.
Remember, to keep philosophy out of our work and to remain strictly practical, we need to remain rigorous in our study.
One description of a subtrend is that it is the smallest trend (being 3 candles or more) in any given chart of price action such that it cannot be broken into a smaller trend.
This is, however, not the rigorous definition we will be looking for. :eek: :eek:
As an analogy, we can consider these subtrends to be like atoms.
(the smallest part of an element that can exist by itself).
The atom of course consists of smaller parts - protons, neutrons, electrons.
These are like the 1 or 2 forward or retracement candles that can be in our price chart without being part of a subtrend.
(remember, 3 candles = minimum subtrend).
OK, thats as far as I will take this analogy.
I am not going into physics - just making a [U]very close study [/U]of our price action.
:eek: 
