As work on such things (among other distractions) can interfere with trading, one tries to bear the market in mind. In writing the first half of a sonata form movement, one proposes two themes in the tonic key, bridging then to two themes in a contrasting key, usually the dominant or the relative minor. Now the proportion of time spent in tonic compared to the other key is significant.

If the tonic section is too short it does not allow enough gravitas before moving to the other key. This is all about emotional response to the establishment of dynamic tension. Is there a parallel in the Market?

I am using a phi-mous ratio, with the contrasting section approximately 1.6 times the tonic section. So I would be interested to see if similar ratios are found in the triumphs and otherwise of the S&P 500, and if not to re-evaluate patterns again after some kind of normalization which removes volatility; this latter being akin to the conductor gesturing accelerando or rallentando (in music irrelevant to the number of bars).

With my old stock-based calendars gradually being replaced by new spreads based on indices, I'll be giving such ideas more attention in the coming months. I guess it would also be timely to learn something about P&F.


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