introduction to structure 1.2

Clarity Trading Structural Analytics

Clarity Trading

Introduction to Vibration &

Structure


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


1

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.

Wave B1 has one full wave in a distinct period.


1

2

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

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.


1

2

4

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.


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 them as a functional reference.

1

2

4


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

longest wave on this chart.

B1


B1

B2

B2 wraps around the B1.


B1

B2

B3

And B3 wraps around B2.


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 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.


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 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.


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.


P R I C E

Price on the Y axis.

Y


P R I C E

T I M E

And Time on the X axis

X


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.

Strictly speaking, without introducing

another element, like volume, no freedom here.

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?


P R I C E

T I M E

Markets do have degrees of freedom in price.


P R I C E

T I M E

Markets do have degrees of freedom in price.

Price can move 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.

B1

B2

B3


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.

introduction to structure 1.2

Economy & Finance