There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Thursday, February 16, 2012

Data Packets

Markets are dual auction processes which produce continuous stream of data. Human mind is not capable of absorbing and  assimilating this streaming data in real time. Hence we chop this continuous data into small pieces and make convenient packets. Then we make a visual representation of these data packets with the help of our charting programs .

Imagine a soap factory . Mixed chemicals are pumped  to the production line for molding. After molding ,each soap is packed . Further ,five of them are bundled together. A dozen of these bundles are then packed in a card board carton..Six cartons makes a stack. These stacks are transported five at a time and loaded to a truck waiting outside. A shipment container  can accommodate 12 truck loads.of 20 stacks.. The idea is clear I think.

As a retail user I do not need cartons or containers

I salute the good old tape readers.

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