Encouragements for the updates and further developments of these new ETI tools in technical analysis.
 
The application of Entropic Trend Indicators (ETI
in Stock Market analysis
In this website we will propose and use our new ETI tools in trying to describe the predictable FUTURE (in French: le Futur) which can be called NECESSITY. We'll try to model the evolution of different types of stocks, indexes, industry groups and ETF in the US stock market, as well as Forex market using new "living tools" as the ENTROPIC TREND INDICATORS (ETI) developed by our webmaster with Stockfinder (Blocks software from Worden Brothers) creating a true ENTROPIC TREND ANALYZER (ETA). But ETI will not be able to predict the "unpredictable FUTUR" ( which is called "l'Avenir" in French by Prof. Derrida). "L'Avenir" which is a mixture of Necessity and Randomness, or better the new Necessity after the action of mutative Randomness.

The new Necessity (like the new “ New York ” after September 11) has its own accurate Ground-zero on the graphics ... and a new life can be built on it following the rules of Necessity…. until a new grain of salt of Randomness is poured into the soup. As you will see our ENTROPIC TREND INDICATORS (ETI) are extremely accurate in predicting NECESSITY before and after the action of mutative RANDOMNESS.



Golden Star Resources (GSS) : possibly a multi baggers from here
(June 9, 2014)


The Stock or Forex or other financial markets are the only rudimentary LIVING organisms on Earth that are accurately measurable using LIVING TOOLS like the Entropic Trend Indicators (ETI).

Like Physical Living Organisms (PLO: microorganisms, plants and animals) a FINANCIAL SYSTEM is a true "Living Organism" which has to follow the rules of  “Necessity” (described by Prof. J. Monod) in a thermodynamically open system. In order to live or survive it has to grow and therefore build its own “project”. Financial Living Systems should be considered as Non Physical Living Organisms (NPLO) and should belong to the Human Social Living Sciences (HSLS) which are usually considered as smooth sciences and too complex to be analyzed accurately. If PLO have their own genome located in their own body, NPLO without any body should have a delocalized genome if they are living systems and a project for building their own life.
On this website we are simply describing the first accurate "genetic analysis" of delocalized genomic coded information from some Human Social Living Sciences (HSLS) systems using our new Entropic Trend Indicators  (ETI) tools

because
we have just discovered that this "genetic" coded information can be found in graphic trend.

As an application here we have developed these ETI tools for analyzing some tickers from US stock market and some pairs from Forex market.


Results from ETI tools are extremely accurate in HSLS analysis when database is sufficient. ETI tools should be useful in other HSLS trend analysis like webmarketing, access to websites, other statistics with full database, etc…

In order to analyze financial charts we have developed:

  • an ETI graphic system, then

  • an ETI language describing the resulting entropic trend into meaningful candlestick's names: each candlestick (in any time frame) gets a specific short name depending on ETI positions and interactions, then

  • an ETI translation tool taking incomplete and complete rainbows formation into account, as well as Black Holes (BH) in each time frame, and finally, 

  • a trend analysis tool comparing trend information from all time frames.


SPY (SP500 ETF) weekly chart (SEP 2011) with Stockfinder (Worden Brothers)




Entropic algorithms cannot be used with most public software available. Thanks to Worden Brothers you can partially but efficiently evaluate the Entropic Trend Indicators (ETI) with streaming charts using charts from www.freestockcharts.com.  But only Stockfinder (from Worden Brothers) can deliver accurate and full ETI analysis and scanning conditions for stock market analysis.

 

  

In “What is life ?” Erwin Schrödinger describes “Free Energy” as Negative Entropy or Negentropy. It is the amount of Energy available for work, for construction, for organization.

Basically any graphical system with an up-trend (for example with price going up) is an easy description of “construction” and therefore increase of negentropy in an open system. Apparently tickers’ prices in the stock market are depending mainly on total energy of the system, …….but this has to work like an image in a mirror for both up and down trends.

Therefore price moves up or down have to be analyzed using our Entropic Trend Indicators graphics as a tool which can describe construction of a higher price or a construction of a lower price, respectively, … following the up-trend or …the down-trend.

A simple analytic representation of Entropic Trend Indicators’ lane can be the following:

A) Any ETI up-trend construction is driven by negentropy or syntropy (with total energy increase). Pullback DOWN, consolidation or partial rainbow deconstruction to an intermediate rainbow (DOWN) might be entropically driven.

B) Any ETI down-trend construction is driven by negentropy or syntropy (with a total energy decrease). Pullback UP, consolidation or partial rainbow deconstruction to an intermediate rainbow (UP) might be entropically driven.


Some selected Entropic Trend Indicators (ETI) can be used as technical analysis (TA) tools. As you will see in this website and at http://www.novaroche.com ,  these Entropic Indicators are the oscillating modular part of free energy, describing "Need and Necessity"  when (positive or negative) outside energy is provided to the system for construction/deconstruction project.

Following a strict mathematical model of "quantized" indicators' levels, this concept of Entropic Trend Indicators (ETI) analysis is surprisingly simple, accurate and universal. On chart any problem in the complete rainbow construction (UP or DOWN) is visible. Individual candlessticks' energy level can be estimated graphically and measured locally with some precisions in the neighborhood. Finally any relevant candlestick in any time frame gets labeled on chart with a simple but accurate ETI name. Euristics can be used to follow the evolution and interaction of our eight to possibly ten Entropic Trend Indicators (ETI).


The Entropic Trend Indicators (ETI) system is applicable to any candlestick and works with accuracy for any financial ticker in any time frame. It should also be usable in trend analysis of any other Human Social Sciences statistics with sufficient databases.
ETI applied to FOREX is called EFI (Entropic FOREX Indicators).

   




  ETI or EFI can usually determine Trend Targets (TT) which are the ultimate or intermediate complete indicators rainbows. Both are especially rewarding if you believe that "Trend is your friend"




 


Growth and Random Events
Predestination (John Calvin) and Necessity (Jacques Monod) 

 






 


 

For the creationist any system can be described:

  • By God Will or “Predestination” (Reformer J. Calvin) that determine the final state of the system.

Random events are not understandable, may affect apparently and temporarily the system but not its final state.



 

 

For the Evolutionists on the other side

  • Chance or Randomness is a driving force of Evolution. Life follows the laws and rules of physics and chemistry. Entropy (the way to measure the energy dispersion or spread out in a process at a specific temperature)… or “measuring disorder “  increases globally in a close system, following the second law of the thermodynamics.
  • But when the system is open, receiving energy from outside, there are some rules or mechanisms using free energy and fighting dispersion of energy to build a more complex system, something like a project to survive and replicate or reproduce.
  • Living creatures are basically energy processing systems and programmed metastable organisms that cannot continue to function unless a whole molecular system operates synchronically using external source of energy.
  • The “Necessity” (J. Monod) is an independent project that doesn’t need “God intervention”.

 
Random events in the financial system

If  Necessity's trend from *predictable future" can be analyzed scientifically, "true Randomness" cannot be predicted by any ETI indicators by definition ... but will be clearly represented and quantified graphically by some important "black holes"or complete rainbows in some major timeframes. BUT like a natural mutation in biology True Randomness is not a frequent event ...  and most so-called apparently "catastrophic random events" may have some predictability on the chart. 


Entropic Trend Indicators (ETI) analysis of GOOG (Google) WEEKLY streaming chart

Be careful 

 DO NOT TOUCH the BLACK streaming chart…..except for moving the scrollbar <--------------->  
otherwise you’ll leave this ETI website !!!



This ETI tool has been developed with Stockfinder for the US market but can be used on any stock market in the world with a compatible software.  
Contact:
entropy.indicator@gmail.com
 

 
Entropic Trend Indicators (ETI) analysis of FXI (ishare FTSC CHINA 25 Index Fund ETF) MONTHLY chart (Nov 11, 2011) 


 
This example shows the power of our ETI tools.
Main trend is probably growing UP, but FXI has not enough data to confirm this claim ... until 2007 top is broken. But pullback down is more informative: in Nov 2008 we reached rifR(VR) an incomplete rainbow....this means that we will have to come back down in the future in order to complete rR or to complete directly a higher level "complete rainbow" ... rO . For more than one year we know indicator O is lower than R and therefore bottom target is rO. Our hypothesis is that we may reach a double bottom at the level of 2008 lower low reaching rO. At this level if ETI system is more complex (with hybridized structure this will mean that trend down will continue for some time until it will reach finally rO. Right now (starting Oct 2011) we are on a leg up trying to dehybridize PV from rifV(PV)/pricO. In November dehybridization is already completed and price should follow "completion of P" (P has to complete its way up to the top box usually for small indicators).

FXI as a WEEKLY  STREAMING chart 

 

Comment from one of our distinguished Japanese visitors:
"ETI : it's 3D TV on generic TV set"
(.... our visitor may probably know something about Japanese Candlesticks...)
Also it's ENTROPIC CONSTRUCTION and ENTROPIC DECONSTRUCTION that can be easily understood.... as shown as in the following image (FEB 28, 2013).
Question: Well, but during deconstruction price is still going UP for some time...?!
Answer: Ok, it's because in strong UP-trend there is an additional Y (yellow) invisible ETI indicator going UP with these two candles... 

 


WARNING



Daily, weekly or monthly charts should be updated when necessary after market closing, but may not be necessarily updated for any reasons... or streaming charts may not work ! So please look at the closing date on charts.

My interpretations of technical analysis indicators (if any) are only a personal view that may not be validated by stock prices the next day and are therefore no indications or invitations to buy or sell anything. Trading is no games. Ask a professional trader or your broker if you are not sure….and if you believe he may be wrong just measure carefully the risks/reward ratio.



 


Copyright © 2009-14  
B.I.Gentile, Ph.D
 Daniel B., Ph.D
All rights reserved.

Updated : 20140913

 


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