Over the last several years. I have been engulfed with the idea that nature and everything within it is governed by a set of rules. That random events operate within a certain structure. At a macro level, we can look at the random formation of galaxies, the shapes of our planets, the orbit of those planets within our solar system and somehow find the same formations in the palm of our hands. Somehow these random natural formations have a very strict set of rules which they operate by.
Why are things the way they are? That is the fundamental question that drives my studies in Technical Analysis. Why do we have fibonacci spirals in our galaxies, and in a sprout of a fern leaf? Why is it that a rock falling in a pond creates the same ripple effect as the epicenter of an earthquake? My conclusion; the Universe we live in provides us a certain set of rules to operate within and those rules exist at all fractals of life. Let me explain.
Although the possibilities of events occurring in the Universe are infinite, it is still adhering to the fundamental rules set forth by the Universe we live in. To visualize this concept, think of a fly trapped in a closed sphere. The fly can travel any which way and create an infinite amount of new flight patterns. Although the fly may never repeat a flying pattern, it is firmly bound to the sphere and the sphere has determined all of the paths that can be taken by the fly. Now think of nature as the fly and the Universe as the sphere. Energy passes through a ripple in a pond the same way it does in an earthquake. Why doesn't one form squares or triangles as it is releasing energy? Why don't hurricanes or galaxies form in random shapes? Why are planets circle and not trapezoid? Because that simply doesn't adhere to the rules that govern our Universe. Things must be the way they are or they can't be.
This idea that our Universe is limited creates a profound image of everything within it. The size of natural events within the Universe is relative. In fact, everything in the Universe is relative. A catastrophic worldwide earthquake is a microscopic event in the realm of our own Galaxy. This fractal nature of natural forces and patterns exists throughout the Universe. It is in the DNA of everything that exists within it.
Follow me further down the rabbit hole...
Gravitational Waves explained using laymen's terms.
When two black holes spiral toward one another and turn into one, a MASSIVE amount of energy is released in the moment they merge creating a ripple effect throughout the fabric of Gravity. The ripples travel through space and time augmenting it as it passes through. The ripple creates waves similar to a ripple in a pond or an earthquake (hence my argument for fractals in nature).
If we apply the methodology that natural patterns exist in all fractals of life, this event MUST occur in the financial markets. If the gravitational waves are traveling at a certain velocity, then one must be able to determine WHEN it will reach a specific DISTANCE through the FABRIC of space. In the case of financial markets, WHEN is time, DISTANCE is price, and the FABRIC is the price field. That is what I attempt to do by using what I call G Waves (short for Gravitational Waves).
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Key level of support was broken and tested. Would keep an eye for interim decline. Original chart remains in tact. Will update when the level is broken to the upside.
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Technical Note: G Wave analysis uses a curved system of support and resistance. As price makes its way through the waves in the price field, the peaks and valleys of the waves are respected.
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Nice reaction off of Curved S/R level. Although was not a direct hit the curved S/R can act as a "force field" that pushes price in one direction or another.
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Market continues to respect the hidden levels of curved S/R. These levels are essentially the "Gravitational Waves" created by the colliding forces in the market.
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Price broke out of S/R. The next level is highlighted in chart.
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CADJPY continues to push higher. We find ourselves at an important level of Support and Resistance. Next week should continue to push this pair higher. Look for a dramatic move towards the middle/end of the month.
Best, Sirak
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Update: CADJPY broke out of the latest Resistance level and is now testing it for support. Expect this pair to keep moving higher.
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Update: CADJPY approaching next level of attainment. Watch for a strong reaction from this level.
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UPDATE: CADJPY at a critical level. We will either consolidate from here or a move down to the prior level broken in the chart before we continue to move up. Overall, Gwaves will be pushing this pair higher, eventually to the highlighted area in green.
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UPDATE: Price at a crossroad.
CADJPY has failed to surpass this current field of of S/R. If we do not see a break above and a strong close above the current level, this will start to collapse fairly quickly. Notice how the curved system helps us define hidden levels of S/R.
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Time is running out for CADJPY
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Update: Unless we have a cataclysmic event occur to send price to the selling range defined, this trade will expire.