PREFACE TO “THE LAWS OF CHARTS AND MEN”

INTRODUCTION TO “THE LAWS OF CHARTS AND MEN”

I’m older than 40…IF YOU ARE OLDER THAN 40 YEARS OLD… then…

Morpheus :” I feel I owe you an apology. We have a rule…we never free a mind once it reaches a certain age. It’s dangerous, and the mind has trouble letting go. I’ve seen it before, and I’m sorry. I did what I did, because…I had to.”

THE BLUE PILL OR THE RED PILL

YODA TRAINING… It always starts like this…


THE INDUSTRY

Things are quite different now from when I first started mentoring students for trader training.  I don’t think I see any now that were around when I started in 2003.  Trader training has now become, ” An industry.”

When anything becomes an industry there is guaranteed to become corrupted.  Because truth leaves in favor of what is most profitable to the controllers of that industry.  I am not anti industry.  I am pro-trader.

I’m not trying to be seen in fancy suits and jet setting across the world with sexy women and sports cars.  Oh, don’t let me forget fast boats and luxury yachts.

The fancy offices… yeah I need to post plenty of pictures of me in that scene.  Listen…I don;t give a damn about any of that.  I trade for FREEDOM!!!   Freedom means sitting in front of my computer in my under wear, scratching my chest and spilling the milk from my cereal in my lap and say, I’ll change clothes before I go out today…if I decide to go out…

The idea is for no man to control any element of any aspect of any decision I make.  To sheeple that would make me a bonafide rebel.

To wake up every day and not have to give a damn about what some manager thinks.  What someone else tells me to do… While, at the same time, having enough income to live my full life without financial stress.  That has always been the reason I trade for a living.  The financial rewards over and above my needs is just a very nice side effect of FREEDOM…

Below is a hard hitting video.  Hide the kids cause the language is Grimey.  But, no matter your opinions about the speaker, the point is that what he says relates to all industries and not just certain industries.  I like to take my truth like I take my coffee… No sugar…No cream.  Strong and directly to the point with no extra shit…  If a guy who cusses and prays, sometimes both at the same time doesn’t scare you, you just might qualify for me to accept you for training.  If I like you…  Lol, I know…I know…  You thought that all you needed was your training fee.   Thing is, I earn my living from trading, not fees so, I can be picky and still be silly enough to have fun with it.  When I say no man to control me…That also means those who think they can operate with my time as they see fit because they came up with the couple of dollars I charge.  Those who think they can own me/my time to train the way they see fit…  these types of people are also part of what make, the trading, “INDUSTRY.”

 

THE LAW OF CORRESPONDENCE & MARKET BREATH… Markets breath like man…

MAN BREATH…

when you exhale completely, your body is designed to take a “reflex” inhale. By releasing your ribs and expelling all air in the lungs, you engage the spring-like action of your ribs to expand and create a partial vacuum, and the air comes in as a neurological reflex. This is what I call an optimal breath.

Optimal breath means you do not suck air in to “take” a breath or “push” air out to expel a breath. You allow air to flow in and out, so the lungs easily exhale carbon dioxide and effortlessly fill with oxygen.

DIAPHRAGM = TRAMPOLINE… The lungs sit atop the diaphragm

Inhale pushes the diaphragm ( trampoline ) down. The completion of the inhale creates a spring like effect like pushing down on a trampoline… After the inhale, the exhale the diaphragm springs back up to force gases out of the lungs.

Notice that the exhale is created by force.  Notice that force strength is created/setup by the inhale but, is actually expressed on the exhale.  We inhale reflexively so no strength is required to inhale therefore, within the context of our discussion we will call the inhale, “weakness,” and the exhale, “strength.”

From a mechanical standpoint, There can be no strength without weakness to set it up.

To Summarize: inhaling is a reflex but it takes force to exhale

 

MARKET BREATH… AND THE LAW OF CORRESPONDENCE ON THE CHART…

CLICK CHART TO ENLARGE... THEN CLICK THE MAGNIFYING GLASS ABOVE IMAGE FOR FULL SCREEN...

If the candle is blue or/and has a green S above the candle it means that candle closed on strength.  That is the exhale…  Notice that when you see strength, the next candle/s will move down first, before continuing the upward strength.  That move down against strength is the inhale…  Okay, so, where is the diaphragm?    

Whenever you see a strength candle we then look left and below the closing price of the strength candle.  The first candle that is white or/and a W atop the candle.  That is the diaphragm… The trampoline…

 

On the chart I have numbered the last 3 most recent strength candles.  I have drawn lines from right to left to mark the diaphragm candles.  No… this is not a cherry picked example…    One of the most often questions I’m asked by traders is, “WHY ARE MY BREAKOUT TRADES FAILING?”…  The answer is, “because you are entering on the exhale instead of the inhale…  You see, just because one knows where strength or weakness is located does not mean one knows how to trade strength/weakness.  That goes for everything else about trading.  Just because we know how to identify trend doesn’t mean we know how to trade trend, etc…  

 

THE PERSON IS SMART BUT PEOPLE ARE STUPID… How that applies to trading…