Understanding Market Waves

Clarity Trading

Introduction
to Vibration &
Structure

Clarity Trading Structural Analytics

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


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
aggregated Waves


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 B1 and B2
are octaves of 1
each other. They
have a 1:2
relationship.

If B1 were a
musical note, say 2
middle C on a
piano, then B2
would be the
next higher C
note, one octave
up the keyboard.


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

2

4


If B1 were middle C, then B3 would
be the G note in the next octave
above middle C.
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. 1

2

4


Employing the summation concept, it is possible to see the
influence of the component waves in market price charts.


Another useful way of
looking at component
waves is braiding.


Instead of summing the
component waves like in the
previous example, the
component waves are woven
or braided around each other


With a controlling or dominant
wave at each observation level.


around which
the shorter, higher frequencies
braid or wrap.


The component waves on this chart
do not directly equate to the
wraps on the braiding chart, but on the
next page we conceptually identify 1
them as a functional reference.

2

4


B1, the longest wave on the
composite chart, would be the
longest wave on this chart.

B1


B2 wraps around the B1.

B2

B1


And B3 wraps around B2.

B3
B2

B1


Embedded
harmonic
structures, like
the composite
waves we have
been studying,
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.


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?


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?


A Price Chart Has Two Dimensions.


Price on the Y axis.
Y

P
R
I
C
E


And Time on the X axis

P
R
I
C
E

X 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.
Strictly speaking,
without introducing
Clarity Trading Structural Analytics another element,
like volume, 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.


This Pattern Indicates that The Longer Term Braid Has Turned Up.


Studying This Braiding Chart Will Provide A Great Deal of Useful
Information Regarding Market Behavior.
It also will Lead to a Need to Understand Z Plane Phenomena


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.


Understanding Market Waves

Recommended

Recommended

More Related Content

Recently uploaded

Recently uploaded (20)

Featured

Featured (20)

Understanding Market Waves