Sine Wave

A sine wave has a fixed amplitude (price range) and frequency (time range). If we plot the pendulum swing against time we get a sine wave.

sine-wave


The markets look nothing like this, so how can we make sense of where prices are expected to move? Essentially the starting point is understanding that when different sine waves (amplitude and time) collide the resultant wave pattern that will be formed looks like neither – it is the sum of their respective amplitudes at the time of collision.

SINE WAVE ADDITION

If you think of each fractal wave scale as a sine wave we are trying to trace the resultant path where the pitch forks (cycle forks) upper and lower parallels give the amplitude and the median line is where prices will always pass through.

 

4 Responses to Sine Wave

  1. Profile photo of Hermann Hermann says:

    So one basis principle are sine waves that collide and form the trend.
    I like that, because sine waves are simple and as far as i understand it the principles of the world should be simple for something to be nearly perfect it has to be simple with form and time variations creating complexity and endless fractals within that simple set of rules.

  2. Profile photo of mlurski says:

    i would suggest starting with a short commentary
    1 – to better make the high level connection between sine waves and price waves
    2 – then explain how sine waves work
    3 – then explain explain how price waves are just like sine waves

    4 – you use terms here that have not been defined, such as, fractal wave scale, pitch forks, upper and lower paralle, median line

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