May 17, 2011

Does the Market Rhythm Exist? Ask the Cat!

Does the Market Rhythm Exist? Ask the Cat!

"Somebody has told you that the Market is random and no body can tell where it will go? He was wrong and right at the same time. Let the Cat tell you!"

A cat?

Yes, a cat. Before we talk about the cat. Let me ask you. Do you believe that the Market is truly random?
Do you really believe that nothing can predict where the market is going? Not even a crystal ball?

Do you study chart pattern religiously and believe that impulsive waves always followed by corrective waves? Or do you look at your chart such as an astronomical guy looking for a shooting star and wishes that the market will fall after you see some?

Both of you, yes both of you is right and wrong at the same time. The Market is random, and efficient simultaneously.

Ok, now let's get back to the cat.
Yes, we are talking about the famous Schrödinger Cat

Source: Toy Anxiety

For those who never heard about the poor kitty. In the 1930s, Schrödinger put a cat in a box. Closed box. So that we can't see what happen inside.

What's inside the box? Well, you can see it on the picture above. The box actually was an experiment device. 

It contains:
  • A Radioactive material
  • A Cat. Alive at least before it get into the box.
  • A Geiger Counter, It works like a censor.
  • A hammer attached to the Geiger Counter
  • A vial of poison. Hydrocyanic Acid to be specific.
If you ask me, I will tell that it was a killing device. Poor little kitty.

Schrödinger experiment works this way. After we closed the box, the cat will be sealed from the outside universe. We can't see it. We can't hear it. We can't sense whether it already died or still alive. It's a paradox.

The cat will die if :
  1. The radioactive material release particle (remember, the radioactive material was so small that it was equally probable that it won't either.)
  2. The particle sensed by the Geiger Counter thus
  3. The hammer will hit the vial of the poison.
  4. Hydrocyanic Acid will fulfill the box with the cat inside. Results in Kitten's Holocaust.

This experiment usually last for an hour. If in one hour the material didn't released any particle, therefore the kitten will be able to see tomorrow's sunrise.

Now, what happened to the cat during that dreaded hour is no body knows. The cat is dead and alive simultaneously. This state is called as SUPERPOSITION state.

I will leave discussion about the kitten just about now. You may read the title of this post again. 

Does the Market Rhythm exist?

If we ask the cat, it will answer, "Meeeeeooooooooowwwwwww....!"
(translated: "I don't care about the market. But, depend on how you look at the box...errrr .... the Market. Maybe yes, maybe no")

Yes, It will all depend on you. There is only one reality. YOU!

If you look the market such as a random thing. The movement is impossible to track and predict. It will be that way. For you!

But if you look at it, such a way a surgeon look at his subject. Than, you maybe achieved the skill needed to be successful and prosper from the market. 

P.S: This is the introduction post about the Market Rhythm on 4 HOURS MACD Strategy. Yes, I believe in the market rhythm. If you want to know if there is any updates. You may want to follow me on twitter or rss.

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About ArrowFX

Technically analyze the forex market mainly on USDJPY, EURUSD and GBPUSD by using market rhythm method started by Philip Nel on Forex Factory. The thread started on 2007 and still alive.
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