Price Flow Theory (PFT) and the space of the scenarios

Sometime is very important to generate probable scenarios for upcoming process options. Exact answer to question: «why is it so important?», we will get later. Now let’s consider how easy and natural we can generate all possible uninterrupted scenarios using basics of PFT and Price Flow analysis (PFA) technique.

In general case «space options» for price flow has place between «to continue» or «to u-turn». «To u-turn» later and now — is (topologically) the same scenario. Obviously any channel will be u-turned somewhen. So all scenarios in PFA are (topologically) the same and difference is only in Quality of the channel and the influence to upper scales.

Please take a close look at the attached charts and try to imagine that almost all possible options are limited by marked lines.
Important that «continue» at one scale may be «u-turn» at the another.






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