MATHS 101 for choosing TRailing SL for SMO_SAR v.1.0 :-)
say we have a approx eq for CLOSE PRICES as y=2X^2 in an IMPULSE
y(1) = 2
y(2) = 8
y(3) = 18
@ x=1, dy/dx D1y = 2 & d^2y/dx^2 i.e D2y not defined
@ x=2,
D1y = (y2-y1)/ (x2-x1) = 8-2 /1 = 6
D2y = change in D1y i.e = D1y(@x=2)-D1y(x=1)/x2-x1
= 6-2/1 = 4
@ x=3,
D1y = 18-8/3-2 = 10
D2y = 10-6 =4
So ur absolutely right D2y (2nd order differential is constant for a Quad Eq)
Do keep an eye on the Dy/dx though!!!
For a parabolic price rise, dy/dx is supposed to increase in the DIRECTION OF TREND.
This is wot drives 5DEMA in 1 direction during TRENDS :-)
And our aim is to IDENTIFY Wave A or 1& then use this APRIORI info to catch & ride Wave C or W3-W4-5, wotever the case may be on HIGHER DEGREE :-)))
More on this over the next 2 days !
Another guide on where we can book out profits is
from Ew angle,
Cmin =0.618xA & W3min =W1x1.382xw1
So , we can book part profits @ these levels & then put a HARD SL here & trail the balance positions :-)
cheers
SMO
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