Oct

1

I've learned how to foil surf. (It was a brutal learning curve.) You can also downwind surf in open ocean swells on the open ocean, but it's tricky. You need to catch a chop that is steep enough to allow one to get enough speed to get flying on the foil. Once flying on foil, it is very fast and efficient and one can ride the open ocean like a bird.

The trick is to pick the right chops so as not to exhaust yourself paddling before flying on foil. There are 3 or more energy sources manifesting in the ocean wave pattern: (1) wind, (2) surface chop, (3) open ocean ground swell. The various energy sources create different wave energy patterns that overlap. At the intersection of 3 energy sources, a steep breaking chop is created which gives enough energy to paddle in and get up flying on the foil. This is the idea of a rogue wave, but on a smaller scale.

This practice can be applied to trading. As Larry Williams explained in his video on seasonality and cycles, there are energy currents and cycles in the market in seasonal wave patterns. Additionally there is energy in day to day price patterns and, as today, in monthly price patterns. It seems that occasionally three or more of these price patterns overlap and all the energy gets focused in one spot creating a good opportunity for a trade. An example might be 3 or 4 big down days, an x-day new low, an overnight drift pattern, and an end of quarter/month pattern, might all intersect for a good trade opportunity with lots of energy.


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search