Benchmark PTD Formula

A Journey of Discovery

• Is the road going around, over or through the mountains?
• What is be the cost, time involved and distance to be traveled in order to arrive at the destination?

Similar to the Pythagorean theorem, this is an interesting concept but not the PTD formula.

What is the PTD Formula?

Price, time and distance (PTD) are integral parts of the concept. Price is a known amount. 

Time and distance are unknown but are influenced by our collective investment outlooks, trading activities and trend posture. 

These must be measured correctly. In the context of measuring time and distance, please first review my presentation Time, Distance & The Universe.

Real Life Example

The PTD formula is quite similar to a travel destination which involves the primary elements of:

• Price (or cost) to get there
• Time to get there
• Distance traveled to get there

Along the way, there may be detours, road closures, or traffic jams but the primary trend and goal of the journey remains intact.

It should be noted that distance divided by time = velocity. This is the speed of price in any given direction. 

For example if a car travels 180 miles in 3 hours, obviously its velocity (speed) is 60 mph. This is also a measurement of momentum in price.

PTD Force Levels & Interactions

The PTD formula is measurable by observing the current daily, weekly and monthly time frame trends, their force levels and their interactions.

• The weekly trend is obviously 5 times stronger than the daily
• The monthly trend is about 22 times stronger than the daily

Therefore, if the daily trend is positive but both the weekly and monthly are negative, the lifespan of the daily is clearly limited unless the next step (weekly) is achieved.

In other words, if you have a three stage rocket engine designed to achieve orbit and only one stage kicks in, how far in time and distance will this journey last?

Clearly, trading needs to occur within the context and setting of the next higher time frame to determine the duration and distance of the current trade. This is the the key to success.

Therefore, it's critically important for us to be "in tune with time" in any life endeavor including the markets.

In Summary

We already have price. Time and distance are implied by the posture of the daily, weekly and monthly trends. 

In the Independence Gold Mine Series Part 2, the Old Prospector said this about time: "It's really very simple. In terms of price, time and distance, time is the most important. If one can tell time, one can be quite successful. Price and distance follow. Meditate on that for a minute."

Price, time and distance are an integral part of all stock, commodity or index trends. This journey also involves considerable market price changes, time and distance to accomplish but can easily be followed and traded.

Many Market Pendulum forecasts originated from or were influenced by the PTD formula for many years.

Updated: Nov 2023

Related:

Time Distance & The Universe (A Must Read)

The Trading Clock & Telling Time

Caveat

While past performance and probabilities are favorable, results are not guaranteed. Use these trade plans, stocks or comments at your own risk. All analytical content and commentary provided within or from this site is aimed purely to educate or inform readers on the potential technical and fundamental aspects and possible value of intelligent, mathematically based research tools and charts for due diligence purposes.