Introduction to structure 1.0

Clarity Trading

Introduction
to Vibration &
Structure

Clarity Trading Structural Analytics

Markets can be thought of as waves moving through a medium.


Markets can be thought of as waves moving through a medium.

Markets are not random, but they are complex.


Market complexity arises because

no wave is an isolated phenomenon.


Market complexity arises because

No wave is an isolated phenomenon.

All waves are composites of smaller waves
Aggregated into what seem like one wave.


The composite wave on the left
(A) is the amalgamation or sum of
the three sub-waves on the right.
1


The composite Wave on the left
(A) is the amalgamation or sum of
the three sub-waves on the right.
1

Wave B1 has one full wave in a
distinct period.


Wave B2 has two full waves in the
same period as wave B1 has one full
wave.
1

2


Wave B2 has two full waves in the
same period as wave B1 has one full
wave.
1

Wave B1 and B2
2
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 Clarity Trading Structural Analytics
up the keyboard.

Wave B3 vibrates 1.5 times faster
than wave B2 and 3 times faster
than B1.
1

2

4


Wave B3 vibrates 1.5 as fast at
wave B2 and 3 times faster than
B1.
1

2

If B1 were middle C, then B3 would 4
be the G note in the next octave
above middle C.


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. 1

2

4


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.


Another useful way of
looking at component
waves is braiding.


Another useful way of
looking at component
waves is braiding.

Braiding represents the
actual way component
waves interact.


We start to see the
controlling or dominant
wave forms at various scales,
constructed leg by leg.


Add Leg 2.


Add Leg 3


Leg 4 completes the
Sine wave pattern.


The longer wave form also
is a basic sine wave structure, but
it is too big to fully see on this chart.


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 Clarity Trading Structural Analytics
points.

Let’s identify component waves
B1, B2 and B3 on the braiding
chart.
1

2

4


B1 is the longest
wave on this chart.

B1


B2 wraps around the B1.

B2

B1


And B3 wraps around B2.

B3
B2

B1


Let’s identify the same B 1-3
Waves on a price chart.


B1 drawn
symmetrically


B2 drawn
non-
symmetrically


B1, B2 and
B3 (non-
symmetric)


Embedded
harmonic
structures are
seen throughout
nature, from the
smallest to the
largest scales.
All embedded
and intertwined.


Embedded
harmonic
structures are This is a
seen throughout refraction
nature, from the photograph of
smallest to the an atomic
largest scales. structure.
All embedded
and intertwined. Note it is a
single snap shot
in time.

Markets are
successive
snapshots over
multiple time
windows.


The same
nested,
embedded
structure is
found
everywhere
in the
universe.

This is
Kepler’s
model of the
solar system.


The same
nested,
embedded
structure is
found
everywhere
in the
universe.
Again, note
this is a single
This is
snap shot in
Kepler’s
time.
model of the
solar system.
What would
this structure
look like
photographed
in successive
time
snapshots?


The solar
system,
with its
component
underlying
embedded
vibrations
trailing
behind it.


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.


The primary
difference
between the
previous
picture of
the solar
system
moving
through
space / time
and this
chart….


The primary
difference
between the
previous
picture of
the solar
system …is scale and
moving simplicity.
through
space and This chart is a
time and tight shot of
this chart…. only three
underlying
components
taken at a
very close
range.


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.


Note that
dimensionality
is portrayed on
this chart
through Is this the
drawing way markets
illusions. work?

B2 appears to No.
go behind B1
and then in Markets
front of B1, only show
then again the
behind as it summation
wraps around of the
the B1 thread. waves. Not
the waves
themselves.


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.


The braiding chart used drawing tricks to insinuate dimensions.
How does it work in markets?


The braiding chart used drawing tricks to insinuate dimensions.
How does it work in markets?
The chart itself has two dimensions.


Price on the Y axis.

P
R
I
C
E


And Time on the X axis

P
R
I
C
E

TIME


Science defines dimensions in terms of degrees of freedom.
Do markets have degrees of freedom in time?

P
R
I
C
E

TIME


Science defines dimensions in terms of degrees of freedom.
Do markets have degrees of freedom in time?

P
R
I
C
E

TIME No. Time
moves only one
way. No
freedom here.

Markets do have degrees of freedom in price.

P
R
I
C
E

TIME


Markets do have degrees of freedom in price.

P
R
I
C
E

Price can move TIME
up or down.

We can think
of price
behaving
something like
a train seen
from above.


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.


Price is on a track, too. The
track of braided, nested,
embedded harmonic waves
with their associated energy
fields.
B3
B2

B1


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.


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.


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.


Introduction to structure 1.0

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