Introduction to structure 1.0
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Transcript of Introduction to structure 1.0
Clarity Trading Structural Analytics
Clarity Trading
Introduction to Vibration &
Structure
Clarity Trading Structural Analytics
Markets can be thought of as waves moving through a medium.
Clarity Trading Structural Analytics
Markets can be thought of as waves moving through a medium.
Markets are not random, but they are complex.
Clarity Trading Structural Analytics
Market complexity arises because
no wave is an isolated phenomenon.
Clarity Trading Structural Analytics
Market complexity arises because No wave is an isolated phenomenon. All waves are composites of smaller waves Aggregated into what seem like one wave.
Clarity Trading Structural Analytics
1
The composite wave on the left (A) is the amalgamation or sum of the three sub-waves on the right.
Clarity Trading Structural Analytics
1
The composite Wave on the left (A) is the amalgamation or sum of the three sub-waves on the right.
Wave B1 has one full wave in a distinct period.
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1
2
Wave B2 has two full waves in the same period as wave B1 has one full
wave.
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1
2
Wave B2 has two full waves in the same period as wave B1 has one full wave.
Wave B1 and B2 are octaves of
each other. They have a 1:2
relationship.
If B1 were a musical note, say
middle C on a piano, then B2 would be the next higher C
note, one octave up the keyboard.
Clarity Trading Structural Analytics
1
2
4
Wave B3 vibrates 1.5 times faster than wave B2 and 3 times faster
than B1.
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1
2
4
Wave B3 vibrates 1.5 as fast at wave B2 and 3 times faster than B1. If B1 were middle C, then B3 would
be the G note in the next octave above middle C.
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1
2
4
Wave A is the composite of the three octave set of B waves. Wave
A is the wave form of the summation of waves B1, B2 and B3.
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Knowing that all waves are summations of underlying components, one can easily start to see the influence of the
component waves in market price charts.
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Another useful way of looking at component
waves is braiding.
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Another useful way of looking at component waves is braiding. Braiding represents the actual way component
waves interact.
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We start to see the controlling or dominant
wave forms at various scales, constructed leg by leg.
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Add Leg 2.
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Add Leg 3
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Leg 4 completes the Sine wave pattern.
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The longer wave form also is a basic sine wave structure, but
it is too big to fully see on this chart.
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The longer wave form also is a basic sine wave structure, but it is too big to fully see on this chart.
Each wave is the mid-point of rotation for the wave that
braids around it. This is why 50% points often are turning
points.
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1
2
4
Let’s identify component waves B1, B2 and B3 on the braiding
chart.
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B1
B1 is the longest wave on this chart.
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B1
B2
B2 wraps around the B1.
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B1
B2
B3
And B3 wraps around B2.
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Let’s identify the same B 1-3 Waves on a price chart.
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B1 drawn symmetrically
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B2 drawn non-symmetrically
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B1, B2 and B3 (non-symmetric)
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Embedded harmonic
structures are seen throughout nature, from the smallest to the largest scales. All embedded
and intertwined.
Clarity Trading Structural Analytics
Embedded harmonic
structures are seen throughout nature, from the smallest to the largest scales. All embedded
and intertwined.
This is a refraction
photograph of an atomic structure.
Note it is a
single snap shot in time.
Markets are successive
snapshots over multiple time
windows.
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The same nested,
embedded structure is
found everywhere
in the universe.
This is
Kepler’s model of the solar system.
Clarity Trading Structural Analytics
The same nested,
embedded structure is
found everywhere
in the universe.
This is
Kepler’s model of the solar system.
Again, note this is a single snap shot in
time.
What would this structure
look like photographed in successive
time snapshots?
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The solar system, with its
component underlying embedded vibrations
trailing behind it.
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The solar system, with its component underlying embedded vibrations trailing behind it.
Essentially a series of
snapshots of the solar
system moving through space
and time.
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The primary difference
between the previous
picture of the solar system moving through
space / time and this chart….
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The primary difference between the previous picture of the solar system moving through space and time and this chart….
…is scale and simplicity.
This chart is a tight shot of only three underlying
components taken at a very close
range.
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Note that dimensionality is portrayed on
this chart through drawing illusions.
B2 appears to go behind B1 and then in front of B1, then again behind as it
wraps around the B1 thread.
Clarity Trading Structural Analytics
Note that dimensionality is portrayed on this chart through drawing illusions. B2 appears to go behind B1 and then in front of B1, then again behind as it wraps around the B1 thread.
Is this the way markets work? No. Markets only show the summation of the waves. Not the waves themselves.
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At any given point a price is agreed to by a buyer and a seller. That price point represents all the energies of all the buyers and sellers in the world. That price
point represents the summation of all energies at that instant.
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The braiding chart used drawing tricks to insinuate dimensions. How does it work in markets?
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The braiding chart used drawing tricks to insinuate dimensions. How does it work in markets?
The chart itself has two dimensions.
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P R I C E
Price on the Y axis.
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P R I C E
T I M E
And Time on the X axis
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P R I C E
T I M E
Science defines dimensions in terms of degrees of freedom. Do markets have degrees of freedom in time?
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P R I C E
T I M E
Science defines dimensions in terms of degrees of freedom. Do markets have degrees of freedom in time?
No. Time moves only one
way. No freedom here.
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P R I C E
T I M E
Markets do have degrees of freedom in price.
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P R I C E
T I M E
Markets do have degrees of freedom in price.
Price can move up or down.
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We can think of price behaving something like a train seen from above.
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We can think Of price behaving something like a train seen from above. The train is on
a track, going through a three dimensional landscape, but it only has degrees of freedom in one dimension; forward and back.
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Price is on a track, too. The track of braided, nested, embedded harmonic waves with their associated energy fields.
B1
B2
B3
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If one understands braiding, then one understands why common structures like a double bottom followed by a bullish rotation and a structure break are so important.
Clarity Trading Structural Analytics
If one understands braiding, then one understands why common structures like a double bottom followed by a bullish rotation and a structure break are so important. Study the braiding chart carefully.
The conceptual framework of the braiding chart is sound. For example, rotations and structure breaks at a double bottom signify that the higher frame component has turned up.
Clarity Trading Structural Analytics
Opportunity, at all times, is ever present, but it takes clarity to see it.
Markets are not random, but they are complex.
Clarity comes from making the complex simple.
Do not trade unless you have absolute and simple clarity.