futures are chaotic. they induce a neutralising affectt on the influence of volume on price.
consider the following: a pile of wood blocks stacked neatly together has a lower available energy. if you set fire to it, its gping to take a long time to burn, and might go out only part way burnt. if you put tiny spaces between the blocks it creates the perfect room to quickly incinerate the pile. there reaches a point where the wood is too far apart to be set fire to. you can only burn parts of it at a time, and the fire will never reach the entire pile.
price action is much like this pile of wood, and instead of oscillating from a low to a high, fractal chaos oscillates around a 0 pivot. this describes how broken the current trend. when stock is volatile it will return to 0, and a touch of the opposite band is likely. when trend should continue, the indicator will spike to the opposite extreme and a continuation beyond the current band is likely.
consider the following: a pile of wood blocks stacked neatly together has a lower available energy. if you set fire to it, its gping to take a long time to burn, and might go out only part way burnt. if you put tiny spaces between the blocks it creates the perfect room to quickly incinerate the pile. there reaches a point where the wood is too far apart to be set fire to. you can only burn parts of it at a time, and the fire will never reach the entire pile.
price action is much like this pile of wood, and instead of oscillating from a low to a high, fractal chaos oscillates around a 0 pivot. this describes how broken the current trend. when stock is volatile it will return to 0, and a touch of the opposite band is likely. when trend should continue, the indicator will spike to the opposite extreme and a continuation beyond the current band is likely.