Natural Laws

It is not often that I talk about my work. Mostly this is because it’s quite difficult to explain what I do, that when I do it’s not easy to understand and more fundamentally it’s just not that interesting unless you are a maths or markets geek. However, currently there is some relevance, so the short of it is that I earn a living from meticulous analysis of the movements in price series in the financial markets. Using a number of proprietary mathematical models to map the characteristics of a series, I try to gain an insight into forthcoming price action. With my principles rooted in Gann analysis, one of the techniques I employ is the Law of Vibration.

This is a universal law, with many and varied applications. It refers to the premise that the essence of all things is vibration; that everything in the universe is composed of packets of energy and each of these vibrates at specific frequencies. In a pure form it is a simple process to map a standard vibration or oscillation about a stable equilibrium point, be it, for example, the periodic motion of a pendulum or the sine wave produced by a tuning fork.  Bizarrely, the law of vibration is often cited on self-help sites as an essential element of wealth creation, that successful and prosperous people have a common emotional frequency. It’s said that aspiring individuals only have to identify and adopt said frequency to change their lives and wealth. This is not something I buy into, but it does illustrate how natural or universal laws can be applied.

What is important to understand is that even within a system that is well documented, like the financial markets, there are shifts in the resonance or rhythm which alters the nature of the vibration, and this is where an analyst worth their salt will make their money. It’s knowing when the parameters have altered and adjusting accordingly.

The transition from a stable to an unstable system can have devastating effects, in physics terms this can be related to the difference between free vibration and forced vibration, when an unexpected shock is applied. In recent weeks we may all think that the world has gone mad, but perhaps it’s all down to a monumental force applied to an increasingly unstable new vibration mode. We have seen seismic shifts on a geopolitical level that have swept through the Arab world resulting in regime change in a number of countries and now the prospect of a conflict in Libya that has extended the reaches far beyond geographical limitations to the international world. The geophysical system has also been shaken to a new vibration period, amplitude and frequency by the recent earthquakes that have wrecked havoc and resulted in mind-boggling and heart-wrenching loss of life and livelihood in Japan and New Zealand, not forgetting the floods and cyclone that hit Australia. These disasters have shaken to the core the physical foundations of our natural world.

On a fractal level, my natural vibration has had an external force applied and my rhythm has been thrown off balance. I feel like bad luck is piling up, that not only have I had the diagnosis of lymphoedema, a condition that I’m going to have to deal with every day for the rest of my life, but to compound it, I have suffered a particularly nasty injury that means I can neither do the things I love, like cycling and running, nor can I manage as effectively the swelling in my leg.  Sometimes I just want to scream why me? Don’t get me wrong, I’m not comparing my situation with the suffering elsewhere in the world, on that scale it doesn’t even register, but to me it is not inconsiderable.

Looking forward, on a rational perspective, people in Japan, New Zealand and Australia will rebuild their physical lives; the nations whose political systems have been dismantled will also emerge with new governance and hopefully fledgling democracies will endure. I too will manage, adapt and move on. The law of vibration can be used as a vehicle for good; it’s up to me on a personal level to make sure this is the outcome that I achieve.