The start which burns more brightly burns down faster than that which lets out colder and darker light. What does it mean?

We measure force or weakness of a trend by a corner of its lifting or falling. But how intensity of change of the prices cooperates directly with trend constancy? To answer this question, we can address to characteristics of the centripetal force discussed earlier. If each market bears in itself true cost during each moment of time, the dynamic course should reach this price more likely (for smaller number of bars) than slow drift in the same direction. In other words, bars of a vertical trend should finish the movement much more likely than bars of slower trend.

Unfortunately, these slope angles are very relative. Low price deforms movement on arithmetic schedules. Sharp growth deforms movement on logarithmic schedules. So before we can objectively estimate our market star to burn brightly, we should accept general system of consideration of change of the prices. Unfortunately, it is more difficult, than it seems at first sight. A variety of types of schedules and methods forces us to apply measurements which often depend on the software or service which we use. The most fruitful analysis considers entire database so that visual comparison of intensity of a trend had a starting point. Then we can use our eyes and a simple standard deviation to research duration and stability of change of the prices.

Apply this graphic approach to arrange the parabolas which have ripened for strong turns. In opposite representation of the swing-trader, vertical price movement is marked as a scene to counteraction of the intensity in an opposite direction. Also as supernew signals about inevitable decline of a growing old star, the parabola informs the market that it’s fuel of a trend on an outcome, and will soon begin strong reaction.

At first establish the fixed percent of the logarithmic schedule between 15 % and 20 %. Then scan all the entire database in search of papers with the most abrupt corners of short-term change of the prices. Allocate the markets with the highest price bars and visible trends more than 45 degrees. Now reinstall logarithmic scale in automatic for these filtered shares so that recent price action has filled the screen. Apply standard strips of Bollinger and search for bars which are accurately drawn out of the top or bottom strip. Find your level of an input, having passed to smaller time scale and having distinguished there opoosite model which corresponds to features of wider landscape.

The trend which moves under very small corner, also can predict own decline, but for other reasons. Here the turn follows mechanics of models of a raising or going down wedge, visible on many price charts. Both traders and investors want sharpness in the lives. They buy or sell, that it was possible to see price jumps to new levels. Small trends never satisfy this requirement. For example, participants observe how the price for an ascending trend grows to new maxima again and again, but never types enough impulse to increase speed of elevating. Shareholders finally lose interest to such type of behavior of the price and leave a boat in search of more fascinating vehicle for trade. The market loses protection and, eventually, falls off.

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