This post is directed to the subject of trading, so it will not be for everyone. It is for those few, like me, who (naively or not) have sought the Holy Grail in luminous price and time geometry of the markets. This includes technical analysis concepts such as arcs, fib counts, fib retraces, fib time, Gann square of 9, angles and price and time squares, Master time factors, Bayer, Elliott, mirror cycles, Andrews pitch forks, Marechal, Delta, you name it. If all of that is foreign to you, you may yet be a grail seeker in some other pursuit and find this interesting. The concepts I raise here would generally apply to Synchronicity Code theory itself.
In one presentation of the Grail legend, the story begins with a mysterious statement: “Every act has it good and evil results.” Jungians speak of the Grail as an image that contains “opposites” in a unity of some kind. Certainly in the human psyche, but probably everywhere else too, a dual nature to things invariably expresses itself.
When one seeks the Grail in the markets, however, the principle of duality seems to be ignored. One looks for some system or theory that would allow one to be right 100% of the time. After a few skinned knees you say, “ok, I’ll settle for 80%.” Some people may even achieve that, for a time. But even here, there is that gnawing anxiety of never quite knowing whether the next trade will work out or not.
After a while, you begin to think you are an idiot. All the pundits pronounce, from their throne of wisdom, that Gann doesn’t work, Elliot doesn’t work, fibonacci retracements don’t work.
What if they do?
What if implicit in the geometry of markets is another principle, besides the numinous geometric structure, that also must express, like clockwork? What if the duality of right vs. wrong, up vs. down, win vs. loss, must perforce be there, as a law of nature?
This would certainly explain why extraordinary geometric harmonies can be found time after time, and yet when you go to trade them, they vanish, like the Grail, disappearing in the mist, only to appear again tomorrow, after you have given up on the whole thing as so much rubbish.
For me, the reason this truth, if it is such, has been resisted so much has to do with the reason I am drawn toward the numinous geometry in the markets in the first place. I think it is a projection of a Higher Principle that is part of the human psyche. How can something so profound be there and yet seemingly be unworkable?
But what if it were in fact workable? Take fibonacci retracements.
Every one of them.
Take one after another after another.
Roughly half of them are with the trend, and half of them aren’t. You never know which one is going to go far enough to book a profit, but roughly half do. Put your stop just beyond the retrace (allowing for a brief double dip) and take profits at 2:1. Rinse, repeat.
So many people say fibs are useless. But maybe the Holy Grail was right there all the time, hidden in plain sight.
Then the wise guy in the back of the auditorium shouts, “hey dumbo, you’re just confirming that the markets are just a flip of the coin”. Quite. But not quite. To be a flip of a coin implies that it is entirely random. I’m saying it is dual. The difference is that there is a way to proceed that might just be what you were looking for all along.
This priceless gem of wisdom may be priceless only to me. But if you find this to be of some value, I am happy to pay it forward.