Sunday, December 04, 2005

The Importance of the Number Three

The number three shows up very often in technical analysis of stocks. Major bull and bear markets have three important phases. There are three kinds of gaps, the commonly known reversal patterns, such as the triple top and 'head and shoulders' have three peaks. There are three major classification of trends: major, secondary, and minor); and three trend directions (up, down and sideways). Among the generally accepted continuation patterns, there are three triangles–symmetrical, ascending and descending. THere are three principal sources of information–price, volume and open interest.

For whatever reason, the number three plays a very prominent role throughout the field of technical analysis.

Excerpted from Technical Analysis of Financial Markets, by Joesph Murphy

[Author's Note] Interestingly, there are three persons in the Christian Holy Trinity (Father, Son and Holy Spirit), and three persons in the Hindu Holy Trinity (Brahma, Vishnu, and Mahesh)


rajeev said...

some more three..!!

When the Spanish explorer Cortez landed at Veracruz, the first thing he did was burn his ships. Then he told his men: “You can either fight, or you can die.” Burning his ships removed a third alternative: giving up and returning to Spain.

We either wake or dream or die.. again 3..!!

Room cooling Fan has 3 pokes.

We have 3 dimensional co-ordinate system.

We make arranged marriage, love marriage or we dont marry..!! again 3..!!


Huzefa said...

3 , 9 , 21 and 5 , 7 , 49 are two group of nos known to have unique mathematicle properties. Of these the first group has been extensively investigated.3 is a prime number, a Mersenne prime mumber, a triangular number, a Fibonacci number, a Lucas number. Trigonometry is a branch of mathematical science based on measuring triangles, which have 3 sides. Unique to 3, any number is divisible by three if the sum of its digits is divisible by 3, same
applies for its reverse no. 3 is the only integer between e, ie Euler's number e=2.7182 , and pi, ie 22/7=3.142 . Two raised to the power of three , ie 2 x 2 x 2 = 8 , is what forms the one of the fundamental basis of computing, ie a byte. The ancient egyptian pyramids have extraordinary healing and preservation powers, pyramids are 3-D versions of triangles. The most obvious fact about 3 is that of the multiple dimentions thought to exist we are in the 3rd. The Number of petals on a flower is a multiple of three. The phrase "Third time's a charm" usually means the third time a person attempts something, they will succeed. There are three primary colours. The earth is the 3rd planet from the sun. The most fundamental building block of matter, the atom, consists of 3 main components ie the proton, neutron and the electron. The letters A F H K N Y Z are all made up of three lines. The earth , sun and the moon form a trinity. All major religions have 3 or 5 holy signs or entities. Oaths are traditionally repeated three times.In Arabic the way the word Allah (God) is written has got 3 vertical lines. The number 3 since ancient times was always written with three lines , curves or semi-circles in any language. The three Doshas (weaknesses) and their antidotes are the basis of Ayurvedic medicine in India. Man has three growth stages, childhood,
middleage, oldage.
Source : mathematical phenomenas and wikipedia.

Amita said...

Amita said....

The heart, mind and soul and .....the Third Eye

Amita said...

Amita said...
Some more 3s

In ancient Rome,usually a board of three officials who assisted higher magistrates in judicial functions etc.The First Triumvirate (60B.C.) of Pompey, Julius Ceasar and Crassus was an informal group of 3 strong leaders with no sanctioned powers. The Second Triumvirate (43B.C.) of Mark Antony,Lepidus and Octavian held absolute dictatorial powers.

From the age of Triumvirates to the Triple Alliances to the Rome-Berlin-Tokyo Axis ...its all 3.




Consider how the crisis has unfolded over the past eighteen months. The proximate cause is to be found in the housing bubble or more exactly in the excesses of the subprime mortgage market. The longer a double-digit rise in house prices lasted, the more lax the lending practices became. In the end, people could borrow 100 percent of inflated house prices with no money down. Insiders referred to subprime loans as ninja loans—no income, no job, no questions asked. - George Soros in latest book

everything’s going up, there’s a feelgood factor and people tell each other how much their houses are going up at dinner parties,” says Professor Mark Stephens of York University’s Centre for Housing Policy. “Then the music stops, as it always does.”

year, Japan was a more attractive market to put money in. If you look at the US, we can now get an internal rate of return of 25% there, so why would anyone want to come to India?” - a senior executive at an international financial services group, who did not wish to be named.

people told us house prices never go down on a national level, and that there had never been a default of an investment-grade-rated mortgage bond, "Mortgage experts were too caught up." - John Paulson, trader, who bet against subprime market and made $15 billion.

most puzzling are the real-estate projects of Parsvnath. Just have a look at the Pride Asia project near Chandigarh. They are asking almost US $300K-$350 K dollars for 2 bed room apartments. They have Villas in this project that costs more than US $1.5 million dollars. It is true that some people in India have that kind of money in India. However most of their wealth is black money and that can not be used to buy these properties. Obviously, these projects have been launched keeping NRIs in mind. - Sanjeev, comment from another site

Desai, aka Bani, the star of Balalji Telefilms's soap, Kasam Se, has been house hunting for over a year. She had almost closed a 2-BHK deal last year for Rs 1.5 crore in a Oberoi Constructions' building located at Andheri, Mumbai, but when she went back to confirm it, she was asked to cough up Rs 2.61 crore. Since then, she is still house hunting. - Mumbai Mirror


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