[ NATURAL GROWTH ]

The exponential function and logistic curve is involved in the growth of anything in nature including financial assets. Since the logistic curve also can be expanded to exponential functions, the exponential function is essential to measure, understand and predict the growth. The practical thing about the natural number e (approximately 2.71828) is that: the logarithm of an exponential function equals to the exponential expression itself, like following:

      f(x)  = e ^ (kx)
      ln(f(x)) = ln(e ^ (kx)) = kx           [this is a linear function!]

On the other hand the logistic growth only behaves like exponential growth for its earliest growth (later it plateaus out). This is because of  how it's taking into account the maximum possible growth resulting in a so called "maximum carrying capacity". The logarithm of this function is therefore partly linear, and partly nonlinear (curved line).

The consequence of this is that we can now chart the growth behavior simply by finding linear and elliptical symmetry using the logarithmic perspective. This is crucial when investigating OccultMagnetism™, and will be discussed further in the next section.

[ MARKET PSYCHOLOGY AND MASS HYSTERIA ]

Theoretically the market should consist of individuals with an unlimited variation of of ideas and visions of items they buy and/or sell. I think that these individuals's views actually tend to cluster into just a few dominant ideas and visions (just like people tend to identify and align to one of a very few dominant political views). What is an apple worth? Some buyers may consider processing it into a pie or juice, whilst others just want a snack. The cause of these different views may be things like IQ, personality type, race, age, social status, sex etc.. Let's call each one of these dominant clustered views, a "market psychology" .

These market psychologies exist simultaneously and is partly dependent on other market psychologies (the snack apple buyer is affected by the creative apple buyer since they most often compete for the same apple), and partly independent (some days only snack buyer buys apples). The semi-independences is what we're trying to find when investigating the OccultMagnetism™.

It's fair to assume that market psychologies grow and decline according to the logistic- and/or exponential growth functions (found in the previous section). Psychological mass-hysteria emotions like selling panic and fear of missing out (FOMO) probably grow exponentially. There's hardly any limit to the growth of fear, and is probably as uncontrollable or irresistible as an insect reacting to pheromones. Using the "ant circle of death" phenomenon we can see that ants walk in circles until they simply die. This implies that the growth of mass hysteria is not limited by any "maximum carrying capacity" found in logistic growth (otherwise ants wouldn't walk until they died). In contrast, more sensible market psychologies where humans beings behave more rationally, most probably results in logistic growth.

[ OCCULTMAGNETISM™ - THE BIGGER PICTURE ]

From the previous section it was explained how market psychologies grew both in an exponential and logistic manner - and that the logarithm of these result in a mix of linear or elliptical symmetry.

From my earlier understanding it was impossible to find points where more than two trend lines converge perfectly at one spot. Because this would mean that the psychology behind each trend line would have to be in agreement with the other psychologies (trend lines) of the state of the "true future valuation". But if each of those psychologies was actually aware of the future valuation, then why wouldn't simply the price reevaluate to that price immediately. The answer is that the humans doing trade aren't aware of the bigger picture  - just like a single ant isn't aware of being a part of the "circle of death", blinded by pheromones (see previous section).

Why this is comparable with the occult, magick or meme magick is because they also utilize the interconnectedness of the human psychology and exploit the inability of the participants from seeing "the bigger picture". Limited by our human intellectual capacity, we become a sitting duck for the intellectual superior: hence the name OccultMagnetism™ (intellectually superior in this context means the capability of seeing the bigger picture).

Metaphorically being an ant myself, and using my simple intellectual tools of understanding - it's  excessive to require a better explanation of the interconnectedness of the human psyche. What is there to expect from an ant taking a walk inside a circle of death? 

[ FRACTAL POINT OF ATTRACTION ]

Everything is fractals, really. And this theory is no exception to that rule. Therefore the point of which the trend lines converge is named a "fractal point". To find these requires a sharp intuition and perception. Below is a list of useful rule of thumbs.

Rule of thumb (I): use logarithmic view of the asset.

Rule of thumb (II): you could be missing an essential fractal point (not seeing the complete bigger picture) - so don't go all in.

Rule of thumb (III) :  the more trend lines that meet at the fractal point - the more attraction the fractal point seems to hold.

Rule of thumb (IV): the longer back in time a trend line go - the more attraction the fractal point seems to hold.

Rule of thumb (V): don't expect the price of the asset to move in the direction of the fractal point. It's more like a point of acceleration meaning that it could also move like a carousel with an angular velocity.

Rule of thumb (VI): When you find fractal points everywhere or can't find them anywhere - the chaos implies that the method isn't applicable to current market conditions. There could be a mass hysteria going on i.e. a simple trend channel is sufficient for detecting the exponential growth since they appear linear in logarithmic chart view (see previous sections that explains why mass hysteria is an exponential growth and why).

[ FIBONACCI CIRCLE SET ]

Most often the Fibonacci circle set center should be placed in the vicinity of the fractal point of attraction. This is a good rule of thumb. Beware placing the Fibonacci circle set is extremely hard. It's also problematic to understand how it interacts with the price. I won't go deeper into that, since I don't yet have a congruent picture about it. When you get this at the right spot it can fit almost perfectly (bear in mind that for some assets it's seemingly impossible fit). This should be used together with the fractal point of attraction, to get a clue of where to expect future price movement.

Creator:
Kristofer Carlsson
M.Sc Physics


[ LINKS ]
www.tradingview.com/u/LogicalDeduction/
www.tradingview.com/chart/ETHUSD/bObJGUPj-Ethereum-first-crash-to-180-then-shyrocket-to-5000/
www.tradingview.com/chart/BTCUSD/6RzUs3X1-Bitcoin-2900-in-September/
www.tradingview.com/chart/BTCUSD/RJJSa93X-Bitcoin-worst-case-scenario/
www.tradingview.com/chart/LTCUSD/obHz6LJl-LITECOIN-going-to-get-slaughtered/
www.tradingview.com/chart/EOSUSD/3FfShmOv-EOS-magnetic-forces-pushing-it-up/


[ WALL OF SHAME ]
(20 September 2017)  Tradingview: "DianKemla" uses part of OccultMagnetism™ and declares herself its creator (link below). Until today she can't produce a  single chart using this technique pre August 22:d, when LogicalDeduction (Kristofer C.) already presented the technique:
www.tradingview.com/chart/BTCUSDT/pP5EaHGo-BTCUSD-Trendline-Web-Pattern-Education/