... of individual assets Is always a directional movement, never a range, mean-reversion or whatever you call it.
It’s very easy to prove, you can divide every range by trends, but you can’t divide trends by ranges. Even with a help of some mental gymnastics and self-lies, by telling yourself, “I can divide this trend segment by several ranges one after another'', by continuing doing so, going higher and higher in resolutions, at some point you’ll reach ticks that can’t be divided further. Here you can say that every tick is a tiny range of its own. However, suddenly you remember that every tick is either up or down, which is a tiny trend of its own, and from this point you ‘really’ can’t divide it further.
So, DSP mindset is conceptually wrong and not applicable to the markets, unless you're trading composite assets (pairs, spreads, whatever), where range IS the fundamental state. Market Is not a signal there’s no noise there lol, use DSP for music to make dope EQs and saturators, and use the real technical & real quantitative analysis for trading;
@joelylun, any expectation should also always be lower/higher, but never "sideways". If your current expectation is sideways, it means that you're using wrong data restitution (chart timeframe).
joelylun
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@gorx1, Gotcha. Seemed like a cryptic post so was trying to follow.