Project Freedom (9): Trading with the Mutiple-Time-Frames Moving Distribution Charts

I had a tug of war in my mind for some time whether it is the right time to post this new concept of trading in the public domain which I'd developed.  I tossed the coins and my subconscious mind replied: "Go Ahead and post it."

Above are few distribution charts that some financial analyists borrow from statisticians.  Usually, it is shown as a monthly, quarterly or yearly chart to describe the market performance over the state periods in terms of it percentage changes.  So, it is purely a statistic chart and has not much meaning for trading purposes.  For example, as shown in the chart, that a stock "WXYZ" is out perform the market over the last period of time, but it does not show the momentum and trending direction it is continue to move.


The following chart with New indicators - The Moving Distribution Curves, show a NEW way to trade the market.  Take for example, the following chart shows the XLE - Energy Sector ETF.  It's short term Momentum, mid-term Swing and long-term Trend are benchmarked within the whole database (in this case, all ETFs except leveraged ETFs). 

The Brownline show the Current Ticker Relative Strength, in this case is XLE, against all other ETFs in the database.  The Blackline shows the Market Reference Relative Strength, in this case is SPY (S&P500).  And, the Greyline shows the unchanged USD1 Cash Reference Relative Strength.

See...  In Bull market, stocks go up and cash reference line move down.  And, in Bear market, stocks go down and cash reference line move up. 

 

Now, here is a better way to interpret the three color lines in the follow chart.  It shows the same chart, and added the distribution chart on the indicators.  View it as the ditribution charts are moving under the price chart over time, the Brownline shows the the ticker percentile in the database at the point of time.  One would like to BUY the ticker with 1, Stronger than the market reference, and 2, above 80 percentile.  Similar interpretation goes with the Blackline and Greyline.

See.  Stocks/ETFs don't move randomly...  if there is no special demand, it would not move above the 80 percentile.   Similarly, if without special supply, it would not move below the 20% either.

 








Attached are just a few more daily chart with Moving Distribution Curve as examples: KOL, SLV, BRK-A, GLD and QQQ.

Attached are some Weekly Chart examples on: QQQ and BAL.

Note: 
* All the Charts can be Zoom to fit in 24 inch monitor for clearer display.

* The distribution shape illustrated here is for explanation purposes only, as the stock distribution over time does not necessary fit into this kind of shapes and varies over time.  And, some one had recommended me to see this article:  http://hanwangquant.blogspot.sg/2011/09/
And, I found that it helps to explain this concept, and also can be easily implemented in the moving distribution curve.

* This is a new kind of Market Breadth Indicator can be applied on single stock or ETF.

* At any one time, there are tickers fill up the full range from 0 to 100.  Choose to long or short according to th reference line position to have the edge.

* A much better way to "occupy the Wall Street" is to have the public to understand exactly how the game is played.

"Man belongs wherever man wants to go. 

He goes where his vision is!"

- Joseph Murphy

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Self Development Idea (13) - Two Worlds of Reality, and the Magic Mirror

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Everyone of us is simultaneously living in two worlds of reality. One is the "Inside world", and the other is the "Outside world".

In the Inside world, it is yourself consist of "Philosophy, Thoughts, Feelings, Emotions, and Attitudes."

In the Outside world, it is your Environment of "People, Place, Things, Events and full of Public Opinions."

And, in between the two worlds, there is a Magic Mirror.
This mirror has the ability to reflect the reality from one side to the other side...


Note: A summary note taken from reading the book "Mind Power by John Kehoe"
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Take for example.

If the person has a stronger faith in his own Internal World, he is able to eventually project it into the Outside World through the help of his own subconscious mind.

On the other hand, the other case is true also, for a person who does not set any goal or does not has any belief of faith that he can make a difference... The Outside World would keep telling him that this is wrong and that is bad ... Eventually, this would reflect into the person Internal World. Which would create stress and harmful to the body.

So. It is a better deal to choose to be happy and have peace of mind, rather than let the Outside World to dictate what they want you to be.

Many may have read that popular phrase "Your are what you think you are...".  Well, that is over simplified and not accurate. A sage puts it, "We aren't what we think we are, but what WE THINK,  WE ARE!"

"All mankind's inner feelings eventually manifest

themselves as an outer reality."

— Stuart Wilde

Using "The Power of Consciousness" to Heal Gaia (Mother Earth)

The following blog entry shows a similar idea from two Great Men, Napoleon Hill and Bruce Lipton, in leading the way for building a better world using consciousness...

1. Napoleon Hill's Golden Rule

More than half a century ago, in his book Napoleon Hill’s Golden Rules, after learning from a scientist on how the human cells function in the body, he wrote about his imagination on how the entire human race is working interactively like the cells in a human body.

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I saw, in my imagination, the entire human race, every living human being on earth, all gathered in one spot and standing in such a position as to form the perfect outline of a human being. At a distance, this seething mass of humanity would resemble one enormous human being. I could see health and success and prosperity for the whole mass as long as there was no discord or misunderstanding between the individuals who constituted the whole. I could see some of the human beings plowing the ground while others were sowing seed and getting ready to produce food. I could see some of the individuals of that enormous gathering working on clothing. I would see still others entertaining the mass with music and causing each individual to be happy and contented.

Perfect harmony prevailed in this imaginary picture. Every individual had plenty to eat and plenty to wear. All were happy and contented. Sorrow and grief were not to be found.

Then, with sudden switch of the imagination, I saw the picture from another angle, an angle which is comparable to the story of the human cells of which the scientist had been telling me. Away down toward the bottom of this great mass of human beings, at a point which would correspond to one of the imaginary giant’s feet, I saw two tiny little human beings get into an argument. They came to blows. Other human beings began to rush up and join in the argument. Pretty soon, one of the entire feet of the imaginary giant had discontinued its regular business, and the ‘‘human cells’’ of which the foot was composed were fighting among themselves. They no longer cooperated. They no longer functioned normally. Pretty soon, the entire body began to feel the loss of one of its feet. It was crippled. It tried to walk but could not move. Other parts of the body commenced to suffer. The body, as a whole, commenced to suffer with hunger because the loss of its foot prevented it from producing food.

Slowly, that enormous body began to wither and go into decay. I could not help comparing it to the individual human body which withers, goes into decay, and finally into death when any group of cells ceases to carry on its normal work.

There is a remedy which is often applied with successful results when the individual cells of the human body begin to ‘‘lie down on the job,’’ and that remedy is to re-establish harmony and cooperation among the cells to the end that they will again function normally.

That same remedy is the one, and probably the only one, which will save the human race and bring it back to normal, healthy, constructive living once more. The same principle which causes the tiny human body cells to function and cooperate in peace and harmony while the individual enjoys a healthy, happy human body applies with equal precision to the entire human race.

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2. Bruce Lipton's "Spontaneous Evolution"

Video Link to You Tube:<-


And now, Bruce Lipton, a modern internationally recognized leader in bridging science and spirit, has further illustrated the same idea with scientific data and examples in great extend!

In this 50 minutes video clip, it covers many topics which will propel individual onto the path of better consciousness, such as the difference between Subconscious Mind and Conscious Mind, the effect of circumstance on people, how this world became a dog-eat-dog world, and what's the solution to co-create a better world in the very very near future (as the current world system cannot sustain this rate of exponential decay.)

"天下事在局外呐喊议论，总是无益。

必须躬自入局， 挺膺负责 乃有成事之可翼。"

-曾国藩

"For whatever matter it may be, simply by complaining or shouting

outside the scene yet not participating in it will never help.

One must do his part in co-creating the event,

then it can be successful."

- GuoFan,Zeng (A Minister in Qing Dynasty)

Comments:<-

Why Old Beliefs or Behaviors (Habits) are Hard to Change

The short video clip (1 min 20 sec, by Gerald Kein), above explains the reason why old beliefs or behaviors (Habits) are hard to change. And, it has deep implication on how our society behave as it is as today...

* The schools, religions, public media, together with the family members implants ideas and beliefs into the subconscious mind of child since he is borned. And, when the child has grown up, he tends to conform to the Rules of the Society.

Well, below is a short video that can provide the detoxification by only a couple of questions.... (by Jim Rohn).

"WHO said it could not be done? And what great victories has he

to his credit which qualify him to judge others accurately?"

- Napoleon Hill

How does the Media Control Viewer's Thinking...

It is a norm that many people watching the TV for the whole evening, and others may just letting it on for the whole day as long as they are awake.

Mind Influence/Control with subliminal messages:

Here is a short video that demonstrates how the environment can influence and even control a person thinking through subliminal messages. These messages are designed in such a way that it appears to be so insignificant to the conscious mind on the surface. And, when it comes to making the decision, the subconscious mind will automatically pop-up these messages and do certain thing. Such as spending money on unnecessary stuffs, investing in the wrong recommendation, etc...

That's how the advertisement industry works; that's how the financial news works. The subliminal messages basically sending embedded command to the viewers' subconscious mind.

The best shield against these subliminal messages is to avoid them. So, it is good idea not to watch too much TV program. :-)

And... It is not what we do once in a while that counts, but our consistent actions...
Switching off the TV program for a few days would not see the result, while switching it off for a few years make a big difference... Think of the amount of time can be saved and put it into better use. :-)

"Successful people have libraries.

The rest have big screen TVs."

— Jim Rohn

Subliminal Messages Everywhere

They will become what they are told most of the time...

From the book, As a man thinketh, by James Allen, it really only focus on one idea. That is "As a man thinketh in his heart, so is he."

So... Over here, just to bring up a few interesting points for ponder:-
* What make a man think in a particular way or his way of thinking?
* Since when a man start to think the way he think?
* Can the way of thinking be changed?

To address some of these questions...
Recently, more and more self-improvement books seem to merge with some spiritual books and focus on "the power of subconscious mind". And, many of them are focusing in bringing the idea that "Beliefs are the programs that run in the individual subconscious mind."

So... Then where does individual get his Beliefs???
Well... The answer is that everyone starts to build up our own individual beliefs since they were borned.

Take for example, when a baby is getting hungry and do not know how to get her milk, she may start to shack her hands, the legs... but no one knows what is she asking for, and may thought that she is so cute in doing such movement... Until that she really get so hungry and cry! Then the parents will rush to serve her milk... That's the first Beliefs that she learned and burn-in to her subconscious mind. That's "You need to cry in order to get what you want!"

As time goes by, the babies get to learn more rubbish than good... from the public education, media, etc...

Of course, for those who had spent some time to do their own research, they would find that beliefs are just like habbits, and it can be changed... Through many methods, such as hypnosis, self-hypnosis, affirmation, self-talk, NLP training, subliminal program, etc...

The idea here is that...

WHY NOT FEED THE RIGHT STUFFS FIRST START FROM THE VERY BEGINNIG since the children are still young... It would help them to be successful with much less trial and effort in correcting the old and rubbish beliefs.

So... for the child who receive more encouragement based education, he would build up a strong courage and confidence about himself.

Likewise, for those children who receive more punishment based education, they would have low self-estem and lack of confidence when grow up...

"It doesn't matter where you are coming from.

All that matters is where you are going."

— Brian Tracy

Self Development Idea (6) - The Unseen Guides

"Do the thing, and you will get the

energy to do the thing."

- Ralph Waldo Emerson

In his classic book, "Chapter 14 The Sixth Sense of Think and Grow Rich", Napoleon Hill wrote that: "Every night, over a long period of years, I held an imaginary Council meeting with this group whom I called my "Invisible Counselors." "

He said that he began with nine men and they were Emerson, Paine, Edison, Darwin, Lincoln, Burbank, Napoleon, Ford, and Carnegie. And, every night, in his mind, he held an imaginary Council meeting with this group of people.

Later on, he added new members as he need new ideas of skill in different aspect, and finally he got more than fifty members.(at the time the book was published)

Later on in his other books... "You Can Work Your Own Miracles", and "Grow Rich! With Peace of Mind." He wrote with more unreserved on this subject call the Unseen Guides.

"Our unseen guides, whose existence can be proved only by those who have recognized them and accepted their services, remain at our service from the time of our birth until our death" - Napoleon Hill

And here are the summary of the Eight Invisible Guiding Prices and their Responsibility:

1) Prince of Financial Prosperity
Responsible for keeping him adequately supplied with every material thing which he desire or need to maintain the style of living which he have adopted.

2) Prince of Sound Physical Health
Responsible for keeping his physical body in perfect order at all times, including the conditioning of the body for any adjustments which have to be made.

3) Prince of Peace of Mind
Responsible for keeping the mind free from disturbing influences, such as fear, superstition, greed, envy, hatred and covetousness.

4) Prince of Hope
5) Prince of Faith (Operating as Twins)
Responsible for keeping the gateway to Infinite Intelligence open to him at all times, under all circumstances.


6) Prince of Love
7) Prince of Romance (Operating as Twins)
Responsible for keeping him youthful in both body and mind, and they do their work so well that he celebrates every birthday by deducting a year from his age!

8) Prince of Overall Wisdom
Responsible for inspiring eternal action on the part of the other seven Princes to the end that each carries out his duties to the fullest extend possible, and protects him while he sleeps the same as while he is awake.

The Figure above is just an illustration of his idea.

Another Self Development Master, Jose Silva, not only mention about the invisible council, he also provide a step by step method to develop such capability. Just that he limit the number of council to be two persons, one male and one female.

"What great thing would you attempt

if you knew you could not fail?"

— Robert H. Schuller

Self Development Idea (5) - The Subconscious Mind

"Whatever we plant in our

subconscious mind and nourish with

repetition and emotion will one day become a reality."

— Earl Nightingale:Author, The Strangest Secret

"A picture is worth a thousand words" is a saying that refers to the idea that complex stories can be described with just a single still image, and this is true.

This is because that human mind thinks in term of "Picture" and express it with words to the outside world, or receiving some words from the outside world that trigger the mind to think in term of "Picture".

People are usually good at imagining or visualizing some images, in their mind, which are physically tangible. Such as a chair, a car, a human body, or even a ghost( which they can recall from the movies or picture books)...

But, when it come to ask people to think in term of some intangible stuffs, such as The Subconscious Mind.... Most people would not have a clue of what is it or where is it... Therefore, our education system develop tools to help people to understand intangible stuffs, such as flow chart, block diagram etc., as a model to work with.

The first diagram above,"Stickman" diagram was originally developed by Thurman Fleet,D.C. to represent our Conscious Mind, Subconscious Mind, and the Body...
http://www.zonedoctors.com/zonedoctors/images/Fleet_Chronology.pdf

All material available today has stated that at least 90% of our mental life is Subconscious. So, as the education system seldom or never taught the public on how to use their Subconscious Mind effectively... Most people are generally actively using only their Conscious part of the Mind, which is only a small fraction of their mental ability!!!

The diagram in Figure 2 was made to represent that at least 90% of our mental power lies in the Subconscious part. All our Beliefs are stored in the Subconscious Mind, and it has unlimited capacity. When one person think that he has forgotten something. Actually, it is only that the Conscious Mind did not able to retrieve the memory stored in the Subconscious part.

We receive all information through our five senses. We filter whatever information received and only accept part of the information according to our Conscious mind, and then act accordingly. So, the Conscious Mind work as a "Watchdog" to allow certain information to get through to the Subconscious Mind, based on his beliefs which was built upon old experience/education.

In Figure 3. It illustrates that:
"The Subconscious Mind has the same quality as the Universal Mind. But, it is of much small quantity. Just like a tea spoon of sea water versus all the sea water in the seas.

On the other hand, the Subconscious Mind has a direct link to the Universal Mind to access the Unlimited Creative Power to over come any challenge in life.” - Idea comes from “The Secret of the Ages” by Robert Collier.

So, for those who are able to use their Subconscious Mind more effectively, either consciously or unconsciously, they would produce Greater Result in everything they do than those who do not.

Fortunately, there are various of methods can help individual to train themselves to be able to use their Subconscious Mind more effectively...

"Knowing is not enough; we must apply.

Willing is not enough; we must do."

— Johann Wolfgang von Goethe

Self Development Tool (1) - The Process of "Thought Becomes Thing!"

The two diagrams posted above illustrate The Process of Thoughts become Things.

In figure 1, the flow chart shows that we have the options to choose through our personal filters in handling all situations that we are facing.

Take for example, one can choose to think of learning a new skill in this global economy crisis, and one can also choose to act like a victim and blame others. :-)

In figure 2, this chart shows some interesting meaning of the Chinese character... "念". Basically this word is formed by another two individual characters ->"今"(meaning: Now) and ->"心"(meaning: Heart). For those who understand Chinese, they would know that the Traditional Chinese been using the word "心"(heart) as the place where Thoughts begin. Such as: "专心"(Concentration),"心不在焉"(one's mind is not on what one is doing),"心得"(what one has learned from work),etc...

In summary...

It means that: "The Positive Thought in one's heart Now would create a Positive Result in the Future."

So... If one would like to have some changes to get better results in what so ever, the charts might provide some clue of where it should start from. :-)

"Much of the stress that people feel doesn't come from

having too much to do. It comes from not

finishing what they've started."

— David Allen: Management consultant, trainer, and author