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Commentary

The Idiot Wave

From Brett Steenbarger’s blog:

While rummaging through my attic, I discovered a collection of old manuscripts from Robert Nudnik Idiot, a physiologist and researcher into natural phenomena and the movements of stock markets. It was during Dr. Idiot’s research that he made a surprising discovery: the recurrence of the number 10 in all human bodies he studied. With amazing regularity, each human body had ten fingers, divided into two groups of five. Not content to settle on this discovery, Dr. Idiot proceeded to study the feet of his subjects. He was amazed to find the same pattern of 10 repeated in two groups of five toes.

You can guess what it alludes to, and this is darn funny. The great thing about the wave theories and fibonacci concepts is that if you get 10 such experts in a room you can ask them all the same question and get 10 different answers, each of which will be mathematically correct.

I usually cringe when I hear stuff like Gann fans, the “third of the fifth, but it could be an extension”, fibonacci retracements etc. I find them extremely difficult to accurately test on a back-testing platform. But it seems to work for a lot of people, so heck, let them be, I say.

Still, that post was darn funny.