What is The Face of God? I know that’s your first question. The Face of God is a pattern. This is a pattern drawn by the planets. This pattern has a left side, a center and a right side. Lines on the pattern form support and resistance lines. Prices move according to this pattern. There is one pattern for each day. That one pattern operates in many markets. Each market may be travelling different parts of the pattern.
Introductions:
In my Market Chaos Theory, prices are always moving away from a strange repeller toward a strange attractor. As prices reach the vicinity of a strange attractor, then pass it in time, it becomes a strange repeller. So finding these strange attractors/strange repellers (SA/SR) is very useful.
What I have discovered is that the center of the Face of God pattern is the center of these SA/SRs. It is the physical cause of the SA/SRs. The Face of God is a strange attractor as prices move toward it. When prices pass it in time, it becomes a strange repeller.
So prices tend to move from the center of one Face of God pattern to the center of another Face of God pattern. However, a center may be too hot to be touched, like a hot stove. Prices will move toward that center. When they get close they may shuffle around the center, as you might if you got to close to a hot stove and needed to get past it.
The center of that pattern is extremely high energy. In fact, it is the focus of the highest energy. The value of recognizing and using this pattern is that the vertical moves in markets occur at or near the center of the Face of God patterns. It is obviously these vertical moves that traders both fear and love. That is where prices change the fastest and where money can be made the fastest. Beware. That is also where it can be lost the fastest.
To apply The Face of God pattern in simple. First you draw the pattern. All you need is the date for which you want the pattern. I will teach you how to draw the pattern both by hand and by using the computer program. Once you have the pattern drawn for a given day, you place that pattern on a clear mylar sheet, making an overlay.
Then you slide the pattern over a properly scaled chart. You are looking for the center of a pattern that is not yet complete. You align the left side of the pattern with the existing price action. That locates the center in both price and time.
When you find the center, that allows you to anticipate a vertical move that may occures the center. This pattern is not a trading system. It is a tool for finding good trades. Think of it as an information system. What do I mean by good trades? Goodness equals reward divided by risk. This is the money won divided by the money risked. You want that ratio as high as possible.
At the time you enter a trade your risk is the uncertainty of where price will be in the very near future. A good measure of that is where prices have been in the very recent past. That is simply the range of prices in some time period just prior to trade entry.
The reward is the extent of the movement after you make your entry. If prices just sit there and stay within the range in which they have been trading, you have a very poor reward to risk ratio. But if prices suddenly jump by a large amount, then you have a good reward. If at the time of entry the range is very small, you have a very low risk, and a good reward to risk ratio.
Obviously, what you want to do as a trader is to maximize the ratio of your reward to your risk. The Face of God pattern helps you do this. As prices approach the center of The Face of God pattern, they are guided by the support and resistance lines which make up the pattern. Near the center of that pattern the price range will narrow.
Very near the center of the pattern one can place entry stops: a buy stop just above the center, a sell stop just below the center. When the center of the pattern is reached, a sharp vertical move is very likely to occur. Occasionally, prices will come out of the center horizontally to the right. Most of the time a sharp vertical move will occur.
It will usually go a distance that is several times larger than the range of prices coming into the center. That sharp movement will elect one of your stops and a rapid price change will carry your trade with it.
Contents:
- Introduction
- Glimpsing the Face of God
- Drawing the Face of God Pattern
- Scaling of Price Charts
- A Day of Live Trading
- Developing a FOG Trading system
- Role of the Natal FOG
- Tour of God’s Gallery
- Conclusion
