The Law of Quantum Resonance
Definition:
The Law of Quantum Resonance states that price movements in financial markets are not only influenced by technical indicators or fundamental data but also by collective psychological resonance patterns of market participants. These patterns follow a kind of "quantum logic," where prices move in overlapping probability waves and only take a clear direction once a critical mass of market participants shares the same thought or expectation.
Core Principles:
Resonance Points (R-Points):
R-Points are psychological price levels where the expectations of market participants strongly overlap. These points emerge when a critical mass of traders observes and reacts to the same technical indicator (e.g., Fibonacci retracements, support/resistance levels).
Example: If 70% of traders expect the price to find support at $100, this level becomes an R-Point.
Quantum Superposition:
Until an R-Point is reached, the price moves in a kind of "superposition state," where multiple possible directions exist simultaneously. Only when the R-Point is tested does the probability wave "collapse," and the price chooses a direction.
Resonance Impulses:
When an R-Point is tested, a resonance impulse occurs, driving the price in the opposite direction. This happens because the majority of traders adjust their positions at this level (e.g., triggering stop-loss orders or taking profits).
Example: If a resistance level at $120 is tested, the price might experience a strong pullback afterward as many traders sell.
Resonance Cycles:
Markets move in cycles determined by the creation and resolution of R-Points. A cycle ends when all relevant R-Points have been tested, and the market enters a new "superposition state."
Application:
Identifying R-Points:
Traders must identify the most commonly observed technical levels (e.g., through sentiment analysis, social media, or observing stop-loss clusters).
Example: If many traders are talking about a specific Fibonacci level, it becomes an R-Point.
Trading Strategy:
Buy or sell when an R-Point is tested and profit from the subsequent resonance impulse.
Example: If the price tests an R-Point at $100 (support), buy and expect an upward trend.
Risk Management:
Place stop-loss orders just below or above R-Points, as these levels often act as "triggers" for strong movements.
Example:
A trader observes the price approaching a significant Fibonacci retracement at $150. At the same time, sentiment analysis shows that 80% of market participants expect this level to act as resistance.
The trader recognizes $150 as an R-Point and prepares for a resonance impulse.
Once the price tests $150, a strong downward movement occurs as many traders sell. The trader profits from this impulse.
Why is it original?
The Law of Quantum Resonance combines technical analysis with collective psychology and quantum physics concepts. It assumes that markets are not only driven by data but also by the thoughts and expectations of participants. This law is a mix of technology, psychology, and a bit of philosophy – making it completely unique!
The Law of Quantum Resonance states that price movements in financial markets are not only influenced by technical indicators or fundamental data but also by collective psychological resonance patterns of market participants. These patterns follow a kind of "quantum logic," where prices move in overlapping probability waves and only take a clear direction once a critical mass of market participants shares the same thought or expectation.
Core Principles:
Resonance Points (R-Points):
R-Points are psychological price levels where the expectations of market participants strongly overlap. These points emerge when a critical mass of traders observes and reacts to the same technical indicator (e.g., Fibonacci retracements, support/resistance levels).
Example: If 70% of traders expect the price to find support at $100, this level becomes an R-Point.
Quantum Superposition:
Until an R-Point is reached, the price moves in a kind of "superposition state," where multiple possible directions exist simultaneously. Only when the R-Point is tested does the probability wave "collapse," and the price chooses a direction.
Resonance Impulses:
When an R-Point is tested, a resonance impulse occurs, driving the price in the opposite direction. This happens because the majority of traders adjust their positions at this level (e.g., triggering stop-loss orders or taking profits).
Example: If a resistance level at $120 is tested, the price might experience a strong pullback afterward as many traders sell.
Resonance Cycles:
Markets move in cycles determined by the creation and resolution of R-Points. A cycle ends when all relevant R-Points have been tested, and the market enters a new "superposition state."
Application:
Identifying R-Points:
Traders must identify the most commonly observed technical levels (e.g., through sentiment analysis, social media, or observing stop-loss clusters).
Example: If many traders are talking about a specific Fibonacci level, it becomes an R-Point.
Trading Strategy:
Buy or sell when an R-Point is tested and profit from the subsequent resonance impulse.
Example: If the price tests an R-Point at $100 (support), buy and expect an upward trend.
Risk Management:
Place stop-loss orders just below or above R-Points, as these levels often act as "triggers" for strong movements.
Example:
A trader observes the price approaching a significant Fibonacci retracement at $150. At the same time, sentiment analysis shows that 80% of market participants expect this level to act as resistance.
The trader recognizes $150 as an R-Point and prepares for a resonance impulse.
Once the price tests $150, a strong downward movement occurs as many traders sell. The trader profits from this impulse.
Why is it original?
The Law of Quantum Resonance combines technical analysis with collective psychology and quantum physics concepts. It assumes that markets are not only driven by data but also by the thoughts and expectations of participants. This law is a mix of technology, psychology, and a bit of philosophy – making it completely unique!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.