Technically, the only other thing I wish to add is we had a complete recovery in the US Dollar which stands close to being in breakout territory. It made the secondary low I thought it would make the only problem is it took a detour as I didn’t think it would test the 80.26 level again. If it goes a little higher then traders will work off a higher low which should bring buying interest into the market.
Those of you familiar with my work know I’ve added a key ingredient about once a year. I’m very excited about these attractor lines. Here’s the theory behind it taken from Wikipedia:
An attractor is a set towards which a variable, moving according to the dictates of a dynamical system, evolves over time. That is, points that get close enough to the attractor remain close even if slightly disturbed. The evolving variable may be represented algebraically as an n-dimensional vector. The attractor is a region in n-dimensional space. In physical systems, the n dimensions may be, for example, two or three positional coordinates for each of one or more physical entities; in economic systems, they may be separate variables such as the inflation rate and the unemployment rate.
What I can tell you for now is these lines have the look and resemble trend lines. Gann figured out with his square of 9 how to interpret a 3 dimensional reading (a circle) based on a 2 dimensional price chart. Those of you with an Elliott/Fibonacci background know that markets are spiraling in all degrees of trend all the time. That’s wonderful, but impossible to identify on a 2 dimensional price chart. The attractor line helps us to navigate a multidimensional mechanism on a 2 dimensional price chart.
This picture is also taken from Wikipedia; it’s a visual representation of a strange attractor. You can see the multidimensional features of it. The truth of the matter is that people like Bill Williams in his landmark book called Trading Chaos and his Investors Dream software identified strange attractors years ago. At the end of the day, the patterns we follow have very similar qualities to the mechanism you are looking at. Luckily, you don’t need to be a rocket scientist or Quantum Physicist in order to trade. But our understanding of the importance of quantum mechanics as it relates to financial markets is revealed at the rate of peeling an onion, one layer at a time.