The Ellipse Part 2

The ellipse is one of my favorite shapes because it describes so much in the universe. Cycles are proven to be ellipticical in nature. The orbits of the planets, of solar systems around galaxies, sub atomic particles, and so forth, are all elliptical.

My first encounter with the ellipse in financial markets was through Brad Cowan and his book, "Four-Dimensional Stock Market Structures and Cycles ". According to Cowan, the major and minor axis form tetrahedral geometry structures and that the advances of price are contained within the ellipse.

The basic shape of the tetrehedron is the equiliateral triangle which I showed in a previous post to be a significant shape that shows up in market charts. So understanding the equilateral triangle it's easier to understand the placement of the ellipse on the chart.

Going beyond Cowan, my research has led me to form some interesting conclusions. Where the tetrehedron is the 3D version of the triangle, the 3D version of the ellipse would be the torus. But the torus isn't just a static object. It rotates around an axis twisting and turning to its center. So because of this 4 dimensional behavour, in essence a straight line within the torus can not be represented on a 2 dimensional chart as a straight line. There is time and motion dimensions not accounted for.

For example, if you were to hold a magic marker in your hand perfectly still for 365.25 days, the orbital path of the earth would carve out a torus in space around the sun. However, the Earth rotates on an axis tilted to 23°. While you would be perfectly still drawing what to you would be a straight line in space, the end result would be a line anything but straight to an observer out in space. If the observer in space attempted to draw what he saw on a 2 dimensional chart, the patterns of the lines would be large when they were close and small when they were far due to 3d perspective coupled with the elliptical orbit of the Earth.

That is just a fraction of the nature of the torus. There's also the vortex, but I'll save that for another time. But think about what is taught in junior high geometry. The circle, ellipse, parabola, and hybperbola are all cross sections of the cone. Does the cone not look like a solid form of the vortex? So do circles, parabolas, and hyperbolas, show up in the markets, too?