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The deep nature of market volatility
Market fluctuations, whether randomness (uncertainty), trend (certainty), or asymmetric periodicity, constitute the essential characteristics of market operation. This includes the duality of stochastic uncertainty and trend certainty, which creates a dual nature of the market at different time series levels.
Seven key features of the principle of market volatility
1.Duality: Market volatility has both random uncertainty and trend certainty. Different time series levels show both random and trendy characteristics.
2.Multi-level trend: The market trend can be divided into multi-level trend according to the time period, forming a hierarchical trend system.
3.Impermissibility: It is difficult to operate accurately in the space and time of any level of trend, making the market full of challenges and variables.
4.Trend Life Cycle: Each trend has its life cycle, including three stages: trend initiation, trend prosperity and trend end, providing diversified investment opportunities for the market.
5.Trend stability: The stability of the trend is directly proportional to the size of the time period, providing investors with a basis for making decisions on different time scales.
6.Trend Contest: The direction in which the market moves depends on the contest between different levels of trends. The formation of trend resonance and trend conflict directly affects the operation of the market.
7.Trend feedback: Large-level trends control small-level trends, and vice versa, small-level trends will also form feedback on large-level trends, and the effect of mutual influence depends on the stage of the trend life cycle in which they are located.
Trend hierarchy design and division
The classification of trend levels is based on four principles: control, stability, sensitivity and personalization. The whole trend system is composed of three different levels of trend subsystems: long-term, medium-term and short-term, and the standard objectified moving flat ** (MA) is used as the specific form of expression to ensure that the system does not have subjective conjecture components.
The most advanced system composition and operating procedures of the trend at all levels
Classification of trend nature.
Current trend: critical**.
Qualitative trend: Critical Confirmation **.
Classification of trend states.
Up: The current index (standing above and pointing upwards.)
Down: The current index (standing below and going downwards.)
Neutral Up: The current index (standing above and going down.
Neutral downward: The current index (standing below and going upwards.
Trend subsystem** composition
It consists of a set of multiple ** (n0, n1, n2, n3) in a certain level time frame, where n0 is the critical ** and n3 is the longest time period**. There is a suitable time interval between different **, and the specific parameters can be selected according to personalization and adaptability, such as (5, 10, 20, 30) or (8, 13, 21, 34), etc. There are at least 2 and no more than 4 ** that make up a trend system.
Assistive technology tools
*Morphology. Fractal structure. Quantity and energy change.
Wave-shaped structure. Time period.
Through in-depth analysis of market volatility principles and trend characteristics, combined with a multi-level trend dynamic tracking model, investors can more accurately capture market changes and achieve a more stable profit strategy. In this world of investment full of challenges and opportunities, understanding the nature of market volatility will be key to success.
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