Alright… Today, we’re going ignite a conversation on the topic of “Time Distortion”.
Specifically, I want to discuss the concept of “Time Distortion” through the perspective of Chaos Theory.
Lightbulbs will go off.
First, let’s begin with the original definition:
Specifically, I want to discuss the concept of “Time Distortion” through the perspective of Chaos Theory.
Lightbulbs will go off.
First, let’s begin with the original definition:
Time Distortion is simply falsified / chaotic Price-Action in a range.
There’s three main concepts that play into this; They are the Accumulation, Manipulation, and Distribution of Price within a single Candlestick.
Well, what specifically is Manipulation?
There’s three main concepts that play into this; They are the Accumulation, Manipulation, and Distribution of Price within a single Candlestick.
Well, what specifically is Manipulation?
The Webster Dictionary defines “Manipulation” as the following:
To control or play upon by artful, unfair, or insidious means especially to one’s own advantage
Well, with this definition, we can see that Manipulation is exactly what it sounds like - it’s Fraudulent.
To control or play upon by artful, unfair, or insidious means especially to one’s own advantage
Well, with this definition, we can see that Manipulation is exactly what it sounds like - it’s Fraudulent.
Understanding this, we can then make the assumption that Accumulation & Distribution are legitimate pieces of the Market Cycle, and Manipulation is an attempt by some third-party entities to take advantage of this Self-Organized Criticality of orders.
Therefore, we can now make the claim that Manipulation is a form of Time Distortion, where price Distorts and creates a false move to induce Participants to either Buy in or Sell out of their positions at a Discount
When you cut out Manipulation, you get a directional Trajectory
When you cut out Manipulation, you get a directional Trajectory
Well, who exactly are these Manipulators and how do I know this to be fact?
Re-Read my Thread regarding Supplemental Liquidity Providers below, and you will achieve your answer…
Remember, SLPs engage in Exploratory Behaviors to extract information from Market-Makers.
Ask why.
Re-Read my Thread regarding Supplemental Liquidity Providers below, and you will achieve your answer…
Remember, SLPs engage in Exploratory Behaviors to extract information from Market-Makers.
Ask why.
Okay, all of that is fine and dandy, but what exactly does this have to do with Chaos Theory and Nonlinear Dynamics?
Let’s start with the example of a Pendulum, which is defined as a Chaotic system. The movement of a Pendulum is Chaotic and depends on a flurry of Factors.
Let’s start with the example of a Pendulum, which is defined as a Chaotic system. The movement of a Pendulum is Chaotic and depends on a flurry of Factors.
When you drop a Pendulum, it will begin to swing back and forth. Speed, Magnitude, etc. are all Factors pf Chaos and depend on its prior state.
It will swing back and fourth until all energy in the system is depleted, leaving it at rest on a single point.
It will swing back and fourth until all energy in the system is depleted, leaving it at rest on a single point.
This single point is the Attractor, and the movement around this point is called a Unstable Periodic Orbit; It’s orbiting around this point until it reaches it
In Chaos, you are dealing with Absolutes - not Probabilities.
Attractors have a 100% Certainty of being reached.
In Chaos, you are dealing with Absolutes - not Probabilities.
Attractors have a 100% Certainty of being reached.
With that being said, the Markets must contain an Attractor. If the Attractor has a 100% Certainty of being reached, then the only question left to answer is “when”.
One could describe certain POIs or Liquidity Pools as an Attractor of Price. We just need to identify it.
One could describe certain POIs or Liquidity Pools as an Attractor of Price. We just need to identify it.
So, if the Markets contain an Attractor (at times), then that means that price is pre-determined to move in that direction.
In this case, any movements in the opposite direction of an Attractor can be described as Time Distortion.
You have to block it out. It’s fake.
In this case, any movements in the opposite direction of an Attractor can be described as Time Distortion.
You have to block it out. It’s fake.
This then loops us back to the idea of Manipulation being a fake piece of Market Architecture.
We can now reach a “true” definition:
Time Distortion is the movement of price in the opposite trajectory of its Attractor; The movement of price in the trajectory of a Repeller.
We can now reach a “true” definition:
Time Distortion is the movement of price in the opposite trajectory of its Attractor; The movement of price in the trajectory of a Repeller.
In this Chaotic state, Stop-Losses become Weapons of Margin Destruction. They are useless.
When price is moving towards an Attractor, it needs liquidity to do so and it will collect all forms of it to reach this state of Self-Organized Criticality.
Price will take you out.
When price is moving towards an Attractor, it needs liquidity to do so and it will collect all forms of it to reach this state of Self-Organized Criticality.
Price will take you out.
But of course, this only applies to the near-term, as Chaos becomes more unpredictable the further you look to analyze it. Chaos can only be used in the short-term, which is why the interpretation of Actor-Network Theory is so important.
Within a Network (Market), you have Actors (Participants / Liquidity Providers) acting on an Actant (Liquidity / Orders).
There must be a relationship between one Actant and another, which can be defined as something like a Cycle or a Dealing Range.
There must be a relationship between one Actant and another, which can be defined as something like a Cycle or a Dealing Range.
We will talk more about the concepts of Self-Organized Criticality, Attractors, and Unstable Periodic Orbits in the Future. We also need to have a discussion about the Power Law…
Do not get frightened by the vocabulary, we are coming close to understanding the Pricing Mechanism
Do not get frightened by the vocabulary, we are coming close to understanding the Pricing Mechanism
For now, I’ll leave you with a few resources to brush up on some concepts in advance:
Self-Organized Criticality:
- youtu.be
Time Distortion: drive.google.com
Visualizing Chaos, Attractors, and Orbits (Don’t focus on Math): youtu.be
Self-Organized Criticality:
- youtu.be
Time Distortion: drive.google.com
Visualizing Chaos, Attractors, and Orbits (Don’t focus on Math): youtu.be
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