There are multiple types of market geometry. There are geometric ratios where price and time have geometric relationships that can coincide with calculations from geometric shapes. Ala fibs, harmonic ratios that result in retracement levels, Gartly Butterflies, and what not. But one of my favorites is actual on the chart geometry.
Three basic shapes. The circle, the triangle, and the square. Sacred/contemplative geometry has used those three basic shapes to create patterns of the platonic solids throughout the ages to describe the universe physically, spiritually, and philosophically. Kind of new age'ish, but actually old age'ish.
In physics and chemistry, the platonic solids are literally three dimensional manifestations of vibration. IE, crystals, the periodic table of elements, cymatics (the image in the upper left), the solar system, etc. So why couldn't a platonic solid or pattern map out the vibration of price?
One of the concepts I've taken is that since price is visually a vibration, hand drawing the 3d representations of vibration.. ie geometric designs.. helps sync up the eye and mind to the vibration of the chart. Sort of like tapping your foot to the song that's on the radio. I also think that on a conscious level, using basic shapes in an artistic manner taps into the creative side of the brain so that the experience uses both sides of the brain. Subconsciously, I think more goes on than that, but ultimately the subconscious also becomes in sync with the experience. Maybe it's first. I don't know. Chicken or the egg. But the point is that everything gets in tune... the chart, the body by way of physically drawing the objects, the conscious, and sub conscious.
I'm going to quote a trader friend of mine from a post he made in a discussion a year ago concerning price and time relationships.
"If you think about it, to trade, we don't really have to arrive to the vibration factor of time through some calculations, it is also possible and much simpler through simple observation when trend changes the first 2 swings or so can tell us the vibration factor of time." - Soso Beton
From Soso's quote, "the first 2 swings or so can tell us the vibration factor of time". That is so powerful because a swing or two can literally map out a geometric form both mathematically and visually.
Below is an example where I started with a simple Merkaba star tetrahedron with one of the sides based on the final swing of an up move. From that shape, I derived vertical points of time where angles within the shape crossed. But the grand daddy was price and time convergence at the apex of one of on of the triangles. The lines of the star also projected out into space and time birthing another star. This new star triangulated an exact point for the swing low in both space and time. Price just barely missed being another dead on triangulation towards the termination of the star cycle. Also note the vertical lines highlighting angle crossings coinciding with price reactions.
While I've seen geometric shapes used as market timing and projection tools, I've never seen follow through on the geometric growth of the shapes and patterns themselves. I find that ironic given amount of information out there concerning growth cycles in the markets.
To really get into market geometry and ratios be sure to check out WD Gann, Michael Jenkins, and Brad Cowan.
In Part 2 I'll show a trade unfold using this type of geometry.
Tuesday, November 25, 2008
True Market Geometry Part 1
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