THE LAW OF CORRESPONDENCE & MARKET BREATH…

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

As I have mentioned many times, there are levels to what I teach.  There is an inner teaching and outer teaching.

The man “ON” the chart is the outer teaching and the man “IN” the chart is the inner teaching.

The man ON the charts is based upon the skeletal gait mechanics of the human body.  The man in the chart is based upon the respiratory system of the human body…

The man ON the charts is about swings ( a series of bars )to determine the strength/weakness of trend developed by walking steps.  The man IN the chart is about bar by bar, breath by breath.

The breath is the inner man and the skeleton the outer man …

Again I tell you that I teach principles not techniques… Breathing is a foundational principle of nature.  Everything goes through the process of respiration…Everything breathes whether you can see it or not…

The trick is to translate that understanding into the price chart.  The price chart breathes…  It must… or everything I teach is a lie…

When knowledge of the inner man is combined with the knowledge of the outer man you will become the master.   Because it is as the ancient masters of wisdom said… “In this universe, man is the measure of all things…

I heard a joke that went something like this, “A man that doesn’t know his own breath doesn’t know his own ass.  And a man who doesn’t know his own ass cannot even trust his own shit, so how can you trust his ass…”

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…