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DeltaT and T1 - an analogy by p^t

[10:57] <p^t> i thought of an interesting analogy
[10:57] <p^t> for explaining these indicators
[10:57] <p^t> someone asked me in the room yesterday afternoon
[10:57] <p^t> and we got onto sematics , acceleration vs momentum
[10:58] <p^t> so i gave it some thought
[10:58] <p^t> and this is what i think is a good analogy
[10:58] <p^t> think of the market as an engine in a car
[10:58] <p^t> the fuel the engine burns is volume
[10:58] <p^t> (ie. contracts flowing thru the market)
[10:59] <p^t> now to drive the car , you hit the gas pedal
[10:59] <p^t> and the engine revs and we take off
[10:59] <p^t> down the road
[11:00] <p^t> once you reach cruising speed you let up on the gas and the car runs along at that speed , say 45 mph, with less pressure required on the pedal
[11:00] <p^t> the start from a stop is the acceleration
[11:00] <p^t> the cruising speed is momentum
[11:00] <p^t> where acceleration drops back to near zero
[11:01] <p^t> ok
[11:01] <p^t> now
[11:01] <p^t> think of your dashboard
[11:01] <p^t> you have two guages
[11:01] <p^t> RPM's and Speed
[11:02] <p^t> RPM's are showing you the instant application of fuel to the engine resulting in increasing or decreasing acceleration
[11:02] <p^t> hit the gas and RPM's rev up high 7000 RPM's
[11:02] <p^t> let up and RPM's drop back to zero
[11:02] <p^t> this is analogs to the DeltaT indicator
[11:02] <p^t> its an RPM guage of the market engine
[11:02] <p^t> measuring acceleration
[11:03] <p^t> T1 is analogs to the Speedometer
[11:03] <p^t> measuring market speed, or momentum
[11:03] <p^t> so what we see in these trends
[11:04] <p^t> is DeltaT giving just enough continuous accelearation, the little bursts off the zero line, to keep the car running along down the road, as measured by T1
[11:04] <p^t> we see DeltaT holding above zero on uptrends
[11:04] <p^t> this pulls the T1 up
[11:04] <p^t> over time
[11:04] <p^t> and visa-versa in down trends
[11:05] <p^t> its the same as your using the accelerator in your car to maintain 45mph, you do little adjustments to hold the speed constant
[11:06] <neato> when ur traveling uphill or downhill, u get divergences ;)
[11:06] <Kalle> yep...and D-T < 0 while T1 > 0 is the break
[11:07] <Kalle> thank you very much, p^t. That´s a good analogy :)
[11:07] <neato> the volume as the fuel was nice
[11:07] <p^t> thank you :)
[11:07] <amilian> great analogy that one
[11:07] <p^t> its hard to describe what DeltaT is, but i think the idea of acceleration comes close
[11:07] <Kalle> yep :)
[11:08] <guy> deltat div buy...
[11:08] <guy> amazing explanation p^t
[11:08] <p^t> thanks guy, we should capture it somehow :)
[11:08] <guy> y
[11:08] <p^t> might help new folks come up to speed (so to speak)
[11:09] <p^t> (pun)
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