As we all know, Fibonacci is a mathematical law which may works amazingly if used wisely and along with trend confirmation.
Just like that, we have more laws which may be implemented in trading. I am going to discuss few of these. These clarifies the references for trend related analysis which may open new doors of questions and answers in your trading research. The main questions is what forces are driving market which we can relate with science? I believe trading is all about reaching a target and finding a new target,
1. Mathematics and Physics Perspective
- Newton’s Laws of Motion: If an object reaches its target, the subsequent projection can theoretically start from its last target position unless other conditions influence it.
- Example: If an object is projected under gravity, once it lands, its next motion depends on the force applied from its current resting position. This is a logic point to consider in trading if a new trend starts exactly from that candlestick which hits your target or based on a new force from there?
- Conservation of Momentum and Energy: The object’s state at the target (velocity, energy, etc.) influences the next motion if no external forces reset or modify its trajectory. Do you consider any external forces such as volume responsible for a new trend?
2. Astronomy and Celestial Mechanics
- Orbital Mechanics: In space, objects are rarely stationary. If a spacecraft reaches a target (e.g., a planet or moon), its next trajectory depends on:
- Gravitational Influences: The gravitational pull of the target or other celestial bodies. Do you think after candlestick hits a target, may require a gravitational pull?
- Relative Motion: Both the spacecraft and the target are typically in motion, so the new projection accounts for their relative velocities and positions. Think about dynamic indicators such as Envelope which keep moving along with price.
- Delta-V: The propulsion system adjusts the trajectory for the next phase. Example : Manually controlled by any system
3. Law-Based Conditions
- Dynamic Systems: If the system has variables like wind resistance, gravitational pull, or environmental factors, the new projection may need to adjust based on these conditions.
- Target Characteristics: The type of target (static or dynamic) influences whether the projection starts anew from the target or adjusts for other conditions.
- Example: If a spacecraft reaches Mars, its next projection (e.g., launching a rover) depends on Mars’ atmospheric and gravitational conditions.
4. Practical Examples
- Missile Trajectory: A missile reaching a target may require recalibration for a new target based on its environment, position, and remaining energy.
- Interplanetary Probes: Probes like Voyager use gravitational assists. Their trajectory depends on conditions at each planetary target.
Conclusion
The decision on whether the next projection starts after candlestick hits your target from the exact last target or adjusts based on conditions depends on:
- External Forces: Gravitational, environmental, and resistance factors.
- Objective: What the projection aims to achieve (e.g., precision, exploration, or continuous motion).
- Mathematical Models: Algorithms or equations governing the system dynamics.
If precision is critical, then conditions at the target must be accounted for before the next projection. This ensures alignment with the laws of physics and optimal outcomes.