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Laws Of Energy And The Financial Markets (SOS-USDT Signal)

DISCLAIMER: This is all purely speculation, this is strictly for educational purposes only and is not meant to be financial advice, please perform your own due diligence and do your own research before investing in any product or service. There is inherent risk with investing and I will not be held responsible for any losses or gains.


So, I think we can all learn something from the fundamental laws of nature that we can conclude to by putting two and two together from the truths we choose to learn in life and applying that to anything we do in life. Human nature is very complex but we all follow the same rules of physics. These ideas of mine are all backed by physics and more specifically acoustics, or the physics of sound.

Background:

A sound is essentially a collection of frequencies of sound waves, and a frequency is essentially a speed of a sound wave. Ever hear a sound from another room and the sound is muffled, like it has a low pass filter? This is because the sound you are hearing is essentially lowering in frequency as it reaches your ear through the walls, or the sound waves are slowing down by the surfaces it is hitting and the distance it is traveling (like when voices from far away sound lower). Lower more bass like frequencies can more easily pass through surfaces, which is why you can hear the bass thumping in passing cars more easily than the other elements of the song playing. Every sound is essentially a vibration of force and energy that eventually decreases in frequency beyond our range of human perception capability (we can hear from 20hz to 20khz), and we are essentially living through a plane of infinitely decreasing sound waves that are dropping (to lets say 0.00000000001 hz as an example). Just because we can't perceive it doesn't mean it doesn't exist. I will get to how this applies to this financial market in a bit. Lower frequencies pass through surfaces more easily, and higher frequencies are less likely to be heard through surfaces yet more likely to be reflected off of surfaces because they are more dense and therefore less able to pass through surfaces. However, mid range frequencies are the easiest for humans to hear, and they are often perceived as more loud to us. This alone applies to one fundamental strategy in trading: mean revision. In mean revision we often have a low point, a high point, and a mean that price often reaches, which makes it easier for humans to consume which in turn leads to a movement of more significance (especially with more volatile instruments like cryptocurrency).

The financial markets are powered by human nature and psychology, but the rules of energy apply to virtually anything. I’ve noticed this particular cryptocurrency season a lot of cryptocurrencies follow a similar trend to this chart:As you can see, there is a low point (1), a high point (2), and finally it retraces to the middle or average of the two price points (3). I’ve been noticing this trend with a lot of the top movers throughout this year. It seems as if we usually see a low point, high point, and a middle point. That is, decreasing (or slowing of energy), increasing (or speeding of energy), and an equilibrium between the two forces before we takeoff to a significant price movement.

I hypothesize that this relates to how humans perceive energy such as sound, we generally are the most sensitive to the middle range of energies therefore may have the most energetic response to it, such as driving price up significantly. Now energy eventually dissipates into what we perceive as nothing if there is nothing powering it, such as sound waves lowering in frequency beyond our perceptual capabilities the farther they go and come in contact with more molecules that lower its frequency (like when sound travels through a wall and sounds more muffled), very similar to abandoned cryptocurrency projects that nobody invests in and has no team or investors “powering” it, which is why we tend to only invest in cryptocurrencies that at the very least have active investors if not an active team. When energy has something powering it, it can in theory continue to expand endlessly in frequency or speed.

Now how does this relate to this chart? We have a low point (1), where energy is decreasing and price action is less volatile and therefore slowing down, which makes it easier to pass through surfaces (ever notice how when an asset drops a lot it causes a lot more attention and we feel more of a response to it rather than when an asset goes up [unless of course you’re invested in that asset]? Like why you look at the “Loss” section of Wall Street bets?) Another form of how this law of energy works is how when an asset drops a lot of people tend to think of it as a buying opportunity (i.e. buy low sell high, buy when people are fearful and sell when they are greedy). People wouldn’t buy any asset unless they thought they were buying at a lower price than what it will eventually become, otherwise there would be no point to investing and you wouldn’t be reading this. Then you have a high point (2), therefore energy is increasing and price action is more volatile and therefore faster, which makes it harder to pass through surfaces (and raises a lot of speculation as to whether the trend will continue or not/gives people a reason to take profits and sell). If these laws weren’t true than assuming there is nothing fundamentally negative about a cryptocurrencies code, sentiment, or market livelihood trends would just continue and there wouldn’t be any contradiction in trends, however it is true which is why we often times see a green candlestick here and a red candlestick there. A lot of people might notice something interesting about this graph, which is that often times many cryptocurrencies will face mean revision before going in any particular direction significantly, the way I see it is a balance between low and high frequencies and energies of price that are found in a middle frequency between the two that is most easily consumable by humans, which in turn causes a huge movement from investors. Now we all know its easier to drop something farther than it is for it to be thrown upwards the same distance, which is one reason why a lot of cryptocurrencies drop significantly in less time than it takes for it to rise. For this reason alone we have to acknowledge the strength of reversals, retracing, rebounds, and especially recoveries, because the price is literally fighting a powerful force that us humans have understood in our physics (like sound infinitely decreasing in frequency).

What I am currently looking for in cryptocurrency follows a few simple rules, keep in mind I am a relatively short term trader and am not into longer term trading even if I plan on profiting on a cryptocurrency long term (basically meaning that I like to actively trade, sell when I think price is high and buy back when I think it is low, and constantly watch the markets).

My Rules:

1. I follow trends and volatility (active movement), and clean charts. I've been keeping an eye on the top moving spot cryptocurrencies on BingX and have noticed these laws of energy working for these cryptocurrencies. I keep track of what cryptocurrencies have moved significantly within recency.

2. I try to buy at a lower point, especially if the cryptocurrency has recently gone up a lot, usually being the middle of two price extremes or a revision of mean.

3. Depending on the profit potential, I may hold for 1-2 weeks, however I generally aim to buy right before it moves a lot as to avoid holding for too long, which I've noticed happens soon after the new low is met, and the volume oscillator either has bullish inversion or crosses the 0 line in a bullish manner (which is open to speculation).

Anyways, I will continue to post on here semi-frequently (as much as I can without my brain hurting), and share my physics backed insights into the markets. I plan on giving out signals for short term gains.

A CRYPTOCURRENCY ON POPULAR EXCHANGES GOES UP AT LEAST 50% PER DAY, LETS WORK TO TRADE EVERY SINGLE ONE AND BECOME GAZZILLIONAIRES THIS HALVING DATE. Take all of this speculative information with a grain of salt, I am not a professional nor is anyone who trades, the ones who are successful are lucky to deeply understand many macro and microeconomic factors that allow them to trade well whether it be cryptocurrency or stocks.


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