Complete and incomplete ETI RAINBOWS formation
Entropic Trend Indicators giving a name to the candlesticksWhen you are following a road on a map you are crossing small villages, small and big towns. Each village or town has its own name and the path or trend you are following is characterized by these names. When you are following the trend on a financial chart you are crossing candles, and in financial analysis there isn’t any method available to characterize this path. With our method you can give a true, unique and very short name to any candle. And by analyzing the specific entropic properties of this path using up to eight*(or ten) Entropic Trend Indicators (which are interacting together) we can easily and accurately interpret the streaming data (and differently in each timeframe), watching price move and trying to understand the reasons of this move in order to possibly anticipate future moves.
The name of a candlestick is composed of a main name followed by a slash and one (or more) complementary name(s). The main name can be a complete rainbow (rR for example) or an incomplete rainbow (rif R(VR) where V and R are hybridized, for example).
1. Main name
1.1 Complete ETI rainbow
To form a complete ETI rainbow (r) of the successive colors with increasing values the following indicators G (green), P (pink), V (violet), R (red), O (orange), Y (yellow), B (blue) and W (white) have to be in a separated state (not hybridized or fused) and in the correct order of strength (hierarchy).
Entropic evolution of complete rainbows can and will only be considered:
- Inside the top NIRVANA box (N box) or North box or pole limited by the scale of 78.6% (red line) and 100% or ,
- Inside the bottom HELL box (L box) or Low box or South box or pole limited by the scale of 21.4% (red line) and 0%, respectively.
(with some software the boxes' limites on charts are 80 and 20, respectively, but are not considered as the true limits for true rainbow definition).
The 8 progressive complete ETI rainbows (r) are described as:
- rG when only G is inside the N or L box to form the ETI rainbow,
rP with P>G in the N box and G>P in the L box,
rV with V>P>G in the N box and G>P>V in the L box,
rR with R>V>P>G in the N box and G>P>V>R in the L box,
rO with O>R>V>P>G in the N box and G>P>V>R>O in the L box,
rY with Y>O>R>V>P>G in the N box and G>P>V>R>O>Y in the L box,
rB with B>Y>O>R>V>P>G in the N box and G>P>V>R>O>Y>B in the L box
rW with W>B>Y>O>R>V>P>G in the N box and G>P>V>R>O>Y>B>W in the L box.
- The two additional "invisible indicators" on some charts have no special colors (for the moment) and are designated X and Z with Z (invisible) > X (invisible) > W (visible) in the N box and W (visible) > X (invisible) > Z (invisible) in the L box.
- When one ETI indicator (G) or more indicators are outside the box the name of the rainbow will be:
prG or prP, prV..... if all indicators are inside the 50% of the chart containing the box. (Two years ago we called them ps-rG....for "pseudo rainbow").
- When one ETI indicator (G) or more indicators are outside the box the name of the rainbow will be:
pprG or pprP, pprV..... if G or more indicators indicators are outside the 50% of the chart containing the box.
1.2 Complete ETI rainbows in construction or deconstruction
Before analyzing the chart you have to defind major and minor trends, and in these trends system you have to know if your rainbows (and therefore their names) are in modular construction or in deconstruction. There is construction when the candles' names are moving from a multi module to a mono module: for example moving from rG/pricO/riY/ricX to rifX(BWX) (incomplete rainbow) or to rX (complete rainbow)
There is "rainbow deconstruction" when mono-modular names are moving to multi- modular names... and this for both UP and DOWN trend.....
1.3 Incomplete ETI rainbow as hybridized states
A rainbow is not fully complete when two or more ETI fonctions are "hybridized" or "fused", so have the same exact value at some time point on a chart. Fused ETI are "incomplete rainbow" (ri) and "fused" (f). We are using also the term "hybridized" because like genes composed of two strains there is an energy relationship with conservation behaviors between indicators at fusion points. Crossing does not involve energy relationship or conservation.
Fusion or hybridization is usually a long crossing with energy interactions: in this major case the result is a "TRANS-dehybridization" like the TRANS relationship of a double bond in organic chemistry. But in some minor cases there may not be any ETI crossing, just a temporary fusion and de-fusion on the same side that is called "CIS-dehybridization" like a CIS relationship of substituents on a double bond in organic chemistry.
Incomplete and fused rainbow are called rif in the main name and the fused indicators are usually given in addition.
For example rifB(RO) with hybridized R=O , a rainbow which would be rB if R and O were not hybridized.
When two or more indicators are hybridized candles' main name may be rifW(VRO), rifY(GP+OY) or ... with invisible indicators ..... rif Z(GP+VR+BWXZ), for example. Also an incomplete rainbow with fusion with at least one indicator outside the box will be a pseudo-rif ps-rif or shorter prif in the main name.
Incomplete ETI rainbows are rainbows with increased entropy compared with corresponding complete rainbow. Entropy decreases when a rainbow is formed from an incomplete ETI rainbow or when the system evolves to a higher ETI rainbow level (higher grade). Entropy decreases also quickly when most of the highest indicators are moving in the same direction to 100% in the N box or to 0% in the L box, or when their “density or compaction” increases near 100% or 0%.
2. Complementary name
After the main name and a slash we are using one (or more) complementary name(s) when necessary.
This could describe the additional incomplete structure of positions and ETI interactions not involved in the main name but inside the top or bottom box. Therefore it is always an incompleted rainbow:
ri : if indicators are not in the correct order and are not hybridized, or
ric : if indicators are in the correct order and are not hybridized or,
rif : if indicators are not in the correct order, but hybridized, and finally,
rifc : if indicators are in the correct order and are hybridized.
In ric or rifc the c may also mean "constructive order" because these ric or rifc structure may mean "continuity" in the build up of complete rainbow.
But be careful rR/ricY can also be a deconstruction rainbow if rY has just been formed.
More than one complementary name are also separated by a slash.
Therefore a full name may be....... for example:
rifY(GP+VRO)/rifcW or rifY(GP+VRO)/rifW which are two different structures with different possible potentials for the near future.
And with invisible indicators this could be
Near a higher high a structure such rifX(WX)/riZ is a clear call for an important pullback in a near future.
Furthermore when a main name is a "pseudo" rainbow (prO or prY, for example) we usually don't add a complementary name, except if an important hybridization has to be shown.
ETI Rainbows disappearing into Black Holes (BH)
In addition to the progressive ETI rainbows formation, one special situation is when some progressive indicators values are suddenly degenerating to 100% in the N box or 0% in the L box……… like a rainbow disappearing suddenly in “strong gravitational field” into a “Black Hole”. This is an ultimate entropic event … following the new physics principles of last century.
This BH should usually correspond to a complete (or incomplete but ordered and hybridized) ETI rainbow in another timeframe and comes usually with a corresponding complete (or incomplete) ETI rainbow determining the continuation of trend or reversal or pullback.
In our system, like in the case of a maximum of eight* visible complete rainbows in the N box” there are only a maximum of eight visible degenerated states of NIRVANA black holes (N-1 to N-8).
N-1 or N-G is when G value = 100%
N-2 or N-P is when G=P= 100%
N-3 or N-V is when G=P=V= 100%
N-4 or N-R is when G=P=V=R= 100%
N-5 or N-O is when G=P=V=R=O= 100%
N-6 or N-Y is when G=P=V=R=O=Y= 100%
N-7 or N-B is when G=P=V=R=O=Y=B= 100%
N-8 or N-W is when G=P=V=R=O=Y=B=W= 100%
For the corresponding HELL “box” there are also only a maximum of eight HELL situations (called L-1 to L-8).
L-1 or L-G is when G value is equal to 0% in the Low or South box.
L-2 or L-P is when G and P values are equal to 0% in the Low or South box.
L-8 or L-W is when G=P=V=R=O=Y=B=W= 0% in the Low or South box.
Very often a NIRVANA or HELL “black hole” situation IN STRONG TREND is a signal of continuation. It is sometimes a strong and efficient signal of reversal for one of the next candles when trend strength is decreasing. In this case it is very often associated with a complete (or incomplete hybridized but ordered) ETI rainbow or a series of Black Holes. Usually a BH has no effects on the fused or hybridized ETI states. A HELL-4 to 8 or NIRVANA-4 to 8 may be a special reversal signal.... for the future candles in the highest timeframes.
In the "one minute to 15-minute charts" the BH jump monitoring from HELL to NIRVANA and back is a very useful tool in the estimation of pullback risks. A BH in these timeframes is a sign of energy accumulation
Also a “Random Event” is very often described by an important HELL or NIRVANA signal (a Black Hole or a complete ETI rainbow) in some important timeframes.
As you can see:
Any financial system or ANY TICKER can be described for ANY CANDLESTICK in ANY TIMEFRAME by a SIMPLE FORMULA or LABEL that gives its degree of entropic trend UP or DOWN at any time.
This SIMPLE FORMULA (as shown in following figure) is candlestick and timeframe specific and is the translation into words of all ETI values at any time.
Giving a name to each relevant candlestick manually is not convenient for a quick analysis of a "one minute chart" for example. For the short timeframes this work should be automatized.
* A system with a maximum of eight Entropic Trend Indicators (G toW) is used here. But depending on algorithms translation, timeframe, data available and software one or two additional indicators can be added: we call them X and Z (or invisible indicators). They can be useful to confirm trend direction at the top or bottom limits. Most softwares are not ETI compatible and only a few like Stockfinder can deliver all visible indicators ... plus X and Z results graphically in some timeframes (usually two for daily and one for weekly charts). Some considered as visible ETI like white indicator W in Stockfinder (for example W indicator weekly) are usually also invisible in other ETI compatible softwares.