As 'Above' so 'Below' - the harmony of natureIn this real world, there is various philosophy that tries to explain the "As above, so below" harmony is the great law of nature but none can prove this law hence it's still a hypothesis.
The law of nature works on everything and the stock market is not untouched by nature.
I am not here to give a lecture on this law of nature but to prove how this harmony of nature is preserved in the stock market and to share my research work on 'Stock-et' science which is equally difficult as 'Rocket' science.
Many of you have heard of these famous patterns:-
'Head and Shoulder'
'Cup and Handle'
'Rounding Top/Bottom'
'Flag/Pennant'
'Double Top/Bottom'
Do you all observe some correlation among them?
They all are candlestick patterns that either decide reversal or continuation, if this was your observation then probably you are correct but I wasn't indicating this.
Let me explain to you what kind of relationship I was talking about.
How do we estimate the target of these patterns? To the target level, we first measure the depth of the pattern i.e. how deep it's below the breakout level.
As its depth is below so will the height above.
Now, I think you all can draw how this law of nature is respected here in the candlestick pattern or more precisely in the stock market.
Let’s have an example to be more sound:-
The above chart describes how the CUP pattern works following this law of nature.
The stock after the breakout rallied non-stop to attain the e height of +94% which was the depth of the cup pattern.
After attaining the target or say 'equilibrium' stock witnessed a jerk, not before that.
This proves how the market preserves "As above, so below" harmony, the great law of nature.
Still not convinced then look to another example,
This is the vice-versa of the previously explained example, here stock attains the depth of -17% i.e. ' equilibrium' after forming a Head and Shoulder pattern with a height of shoulder +17%.
This proves how the market preserves "As below, so above" harmony, the great law of nature.
Now let's look at this concept with different dimensions i.e. dimensions of mathematics, physics, and chemistry.
Don’t be afraid I'm not going to talk about 'rocket' science but 'stock-et' science.
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In math, we all have read negative and positive cancels out i.e. (-3+3=0) same in candlestick patterns if the stock has a pattern depth of then the pattern target would be +30% to attain '0' or say 'equilibrium'.
In physics, we all have read that negative charges neutralize the positive charge to attain 'equilibrium' same in the stock market.
In chemistry, we all have read that all chemical changes occur in nature to attain 'equilibrium' i.e. two elements share their electrons to attain 'stability' (H2O, here two hydrogen molecules share their 1 electron with 6 electrons of oxygen to attain equilibrium) this same happens in markets all market movements occur to attain 'stability'.
Generally, people have fantasies about 'Rocket' science but we traders have fantasies about 'Stock-et' science.
Please drop comments on whether you have a fantasy for any of the above science.
Also, let me know how many of you believe that the stock market doesn't work on speculation but has its science
let's call it 'Stock-et' science.
