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God's Patterns in Financial Markets

  Click here to discover how God uses the number 7 to structure Market Rhythms and brought order out of financial chaos.

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How God Brought Order out of Financial Chaos

The normal everyday meaning of the word chaos is "a sudden rush or panic in movement of great disorder or confusion or having no specific pattern in direction."  This sounds familiar to movements in financial markets, that is, price movements look much disorganized when view from the surface. This is also true when viewing movements of billions of stars in our universe from a far .e.g, from the Earth surface.

For hundreds of years our knowledge of the vastness of the universe and how it is structured has been very limited. Also we have very limited understanding of how and why God created the universe.

Isaiah 55:8-13

8 "For my thoughts are not your thoughts,
       neither are your ways my ways,"
       declares the LORD.

 9 "As the heavens are higher than the earth,
       so are my ways higher than your ways
       and my thoughts than your thoughts.

However, with man's exploration (as allowed by God) into the outer space we are now beginning to see the glory of God's creation  through the orderliness of the universe or what we once thought is chaotic. For example, despite the vastness of the universe with its billions and billions of stars in motion we are told that God knows each one of them by their name.

Isaiah 40:26
Lift your eyes and look to the heavens: Who created all these? He who brings out the starry host one by one, and calls them each by name. Because of his great power and mighty strength, not one of them is missing.

The point here is that only things that are organised that one can remember their names. This is also true of billions of creatures on the Earth surface including human beings. Our actions are also highly structured and organised just like the rest of things in the in the universe. Thus, if we have a proper understanding of how the universe is structured, we will also be able to comprehend how financial markets are structured and functions.

God's Sacred Fractal Patterns.

FRACTAL- is a concept use by mathematicians to describe situations where larger objects are made up from smaller and smaller infinite objects. This is also how God's awesome presence is everywhere one can possibly imagine. In the past it was not possible to think of how fractal concept work, and as mentioned earlier, God has now made it possible (by allowing exploration into outer spaces) for mankind to have better understanding on just some aspect of the universe called  galaxies. 

Isaiah 40:5

      And the glory of the LORD will be revealed,
       and all mankind together will see it.
       For the mouth of the LORD has spoken."

Figure 1: The Whirlpool and Milky-Way Galaxies

The picture above shows images of two galaxies - the Whirlpool and the Milky-Way galaxies taken from the hobo space mission. Each galaxy revolves around its own axis and have its own size or dimension or sphere of influence and move in whirl wind (circular pattern around its sphere of influence (path or orbit) in such a way that it will never spin of its orbit or merge with another galaxy. Each galaxy is made up of billions of stars that revolve around it.

The tiny visible dots are stars as large as the Sun or larger. Two amazing things we can see from the above images are the striking resemblance of the two galaxies in terms of spiral shapes; and the tiny little billions of stars or dots that formed each galaxy. Each star or dot move and spin in circle as they revolves around other larger bodies, and each have other smaller bodies (satellites) bodies that revolves around them. 

Even our mighty Sun appeared as a dot or fractal in the Milky-Way galaxy!  Such view of the Sun in relationship to other billions of stars in the Milky-way galaxy is what is known as fractal. God actually provided us with answer on how things are ordered in the universe. This is what God said about our own Earth when compared to other stars in the universe. 

Isaiah 40:15

       Surely the nations are like a drop in a bucket;
       they are regarded as dust on the scales;
       he weighs the islands as though they were fine dust.

The Earth is like a dot in the universe depending on what scale we are viewing it from. Also remember that the entire Milky-Way and Whirlpool galaxies might also be dots when as we do not know whether there are other galaxies that housed them. To have a detailed view of the Sun’s solar system for example, one will need to zoomed or enlarge the scale of that section of the Milk-Way Galaxy that housed the Sun. When enlarged, we will find the same replica fractal patterns and processes of the Milky-way galaxy to be prevailing and repeating itself – that is, other smaller planets like the Mercury, Venus, Earth, Mars, Jupiter,  Saturn, Uranus, Neptune, and Pluto, revolving around the Sun along a defined path or orbit. 

Figure 2: The Sun's Solar Systems

Note that the Earth and other planets do not move around the Milky-way galaxy but around the Sun. The Sun, on the other hand moves around the Milky-way galaxy along with billions of other stars of the same status.  One uniqueness of this arrangement of things in the universe is that one system cannot affect the other system, e.g Venus cannot affect the movement of the Earth around the Sun that is it cannot deviate from its path and collide with the Earth or exert any influence on the Earth itself. It takes roughly about 365 days for the Earth to make one complete revolution around the Sun.

This fractal arrangement of things also permeates down to all things on the Earth. The Earth has smaller bodies (satellites bodies) moving around it.  The first obvious object that moves around the earth are the moon and other man made objects called satellites. Other not so obvious things include winds, water bodies, ocean currents, and of cause human beings and their activities based on God's Sacred Rhythm Pattern of Time

You might be wondering what concerns a financial trader with astronomy. First we need to establish the fact that markets are not under any gravitational or astronomical or lunar force;

While It takes roughly about 365 days for the Earth to make one complete revolution around the Sun, It takes roughly only 28 days for Earth's satellites bodies e.g. the Moon and all other bodies including energy generated by human beings, winds, spacecraft, etc to revolve around the Earth. It is important to point out also that these smaller bodies revolve around the Earth independent of each other. That is, the movement of winds around the Earth, for example is independent of the movement of the Moon around the Earth. To study them in details, we need to zoom into these smaller bodies that operate around the Earth, in order to discover their internal structure and fractal arrangements. 

This  process of larger body (cycle) being built from smaller parts also exists in virtually all systems of both human or natural activities – including branching systems of trees, blood veins, human brains, road transport networks, electricity and telecommunication systems, electromagnetic waves, etc, and in just about any system in the universe that is built upon smaller cycles or waves. (See also Self-Similarity Behaviour of Financial Fractals )

 

Figure 3: Self -Similarity of Drainage Network

Thus, since we are part of other creatures that inhabited the earth, we generate many different activities in cyclical patterns due to the rotation of the Earth, though these activities may not be as visible as the movement of the Moon or ocean currents around the Earth. It is important however to note  that human beings generate their own unique actions independent of lunar phases.

Just as God arranged the Moon to spin around itself every 28 days, so other smaller systems have their own rhythms or phases or circles which looks similar but independent of the Moon's phases. In this way the Moon does not interfere with plants, animals or human activities on the surface of the Earth. This is the reason why for so many years the lunar phases or even larger planets in the solar system could not be scientifically correlated with the timing of major financial crisis or business cycles in general – that is, there is just no significance relationship between lunar phases and human activities - financial market highs and lows. 

Though, rhythms of things found on earth may look similar (just because that is how God ordered things), one rhythm cannot impact on the other. Remember, just like the Whirlpool galaxy cannot influence the Milky-way galaxy, so also Mars cannot impact on Earth, and thus the Moon cannot impact on human being because all of them have their own unique orbits and sphere of influence. Human beings only revolve around the Earth and not the Moon.  Otherwise the opposite would as well hold true, that is, human actions – e.g. financial markets can cause moon phases or ocean currents or Fibnancci numbers to pause each time market closes. Or that the 28-day cycle of women menstruation can cause lunar phases to pause.

As one author puts it; the lunar force or influence is actually a very weak tidal force. A mother holding her child "will exert 12 million times as much tidal force on her child as the moon". Astronomer George O. Abell claims that a mosquito would exert more gravitational pull on your arm than the moon would. This corroborates the Word of God in Deuteronomy 4:19 even before science comes into existence:

And when you look up to the sky and see the sun, the moon and the stars—all the heavenly array—do not be enticed into bowing down to them and worshiping things the LORD your God has apportioned to all the nations under heaven (.Deuteronomy 4:19)

This shows that there are no such forces in the universe besides God that can significantly affect other things without God’s permission. The Bible reprimands people for doing this as foolishness (Deuteronomy 18:10-12). Look to God for His instructions about life as provided in the Bible. To do otherwise is to foolishly deceive yourself, or allow Satan and his agents to deceive you. The Bible provides examples showing the folly and failures of those who claimed the ability to predict the future based on gravitational influence of some astronomical bodies  or those of spirits (Daniel 2:27, etc.). God calls the word of diviners and astrologers "nonsense," "lies" and "deception" (Ezekiel 13:8; Jeremiah 14:14; Isaiah 44:25). God said, "Woe to the foolish prophets who follow their own spirit and have seen nothing!" (Ezekiel 13:3).

You can now see the reason why since 1939, market analysis based on  lunar phases or natural rhythms like ocean waves or those identified by Fibonacci Numbers) or other gravitational forces seem to have produced no consistent results about the actual direction of the markets. In most cases markets may have moved long before, or after the anticipated event (lunar phase or lunar eclipse) has happened. 

Isaiah 47:13

All the counsel you have received has only worn you out! Let your astrologers come forward, those stargazers who make predictions month by month, let them save you from what is coming upon you.

WHY WE CANNOT PREDICT FINANCIAL MARKETS WITHOUT THE KNOWLEDGE OF GOD

The belief that lunar cycle influences markets has been around and  is reinforced by numerous erroneous economic wave theories that tried to link market waves (rhythms) to that of lunar rhythms or some other rhythms in nature. The most important and well known theory on stock market cycles with specific reference to rhythms of nature is the Elliot Wave Theory created by accountant /mathematician Ralph Nelson Elliot in 1939. Inspired by the Dow Theory, he found correlation or similarity between fluctuations of the stock market with the rhythms created by the ocean waves, and concluded that the movement of the stock market could be predicted by observing and identifying repetitive pattern of ocean waves.  

How correct is this?

Although Elliot did not specifically mention lunar rhythms, but when people talk about rhythms of nature, they are referring to the strong relation between lunar cycles and patterns of falling and rising tides, ocean waves, gravitational forces exerted by the allignment of the Sun, Moon and the Earth, which in turned many claimed affects feeding, reproductive, and activity/rest behaviours for a great variety of plants and animals, both in the seas and on land. People also believe that human biological processes also display lunar rhythms - lunar cycles affect menstruations, reproductions, and sleep/waking patterns of human beings to mention but a few of them.

Thus, this long held erroneous beliefs of influences of lunar rhythms in many areas suggests that it might also exit in market behaviours. He concluded that market moves up in a series of five waves, and down in a series of three waves. In fact, Elliott believed that all of man's activities, not just the stock market, are influenced by these identifiable series of waves. In later years he wrote in his “Nature’s Laws – The Secret of the Universe” (1946) and argued that because humans are themselves rhythmical, their activities and decisions could be predicted in rhythms, too.

In the late 70s, the Wave Principle gained popularity through the work of Robert Prechter, wherein he predicted, in the middle of the crisis of the 70s, the great bull market of the 1980s. Although the method was right in the 1980’s, since then it has consistently failed to predict the market accurately since the 1990s and as a result, most Elliott wave analysts have experienced extraordinary difficulty predicting market activity for the last five to 25 years.  

Hulbert’s Financial Digest, in November 2003, reported that the “Elliott Wave Theorist” (Prechter’s newsletter) reported “a 19.1% annualised loss from the beginning of 1985 through 10/31/03 for a portfolio that went long or short in hypothetical shares of the Wilshire on this letter’s advice for traders, and otherwise earned the T-Bill rate. Buying and holding, in contrast, gained 12.7% annualised.”

In the following October 2004 Prechter again predicted that the Dow was going to fall below 1000 and possibly below 400. Before the end of that year the Dow went up to about 10,000! Nevertheless, there are many people still being mislead that the theory works and hoping they will be right. 

One main reason which accounts for just about all the problems faced by wave counters is the fact that Elliott wave analysis measures human sentiments or rhythms using surrogates found in nature (see Isaiah 47:13 once more) and not in human beings themselves as ordered and decreed by God.  God's Sacred Rhythm Pattern of Time

I hope after you have gone through this page you will see why it is wrong to define market rhythm based on other rhythms found in nature. 

Does this mean we should not speculate or invest our money in financial markets?

Certainly this is not so as Ecclesiastes 11, God advise us for the need to actually invest in different ways due to uncertainties of life:

“1. Send your grain across the seas, and in time, profits will flow back to you.  2 But divide your investments among many places, for you do not know what risks might lie ahead.”

However, we should base such investments on sound knowledge of God patterns in the financial markets. No other pattern works or will make us to be profitable. To avoid seeking advice from wrong channels one should first seek to understand the rhythm of that particular investment he or she is  interested in, since every market has its cycle as ordained by God. The first obvious thing to do is to understand how to look at financial market cycles from the perspective of

1. God's Sacred Rhythm Pattern of Time and

2. God's Sacred Fractal Patterns,  instead of looking at  market cycles based man's understanding of how things are arranged in the universe using Fibonacci Golden ratios or lunar phases or eclipses or gravitational forces.

Market Cycles Based on God's Pattern

Figure 4: Market Cycles Based on  God's Patterns

 Figure 3 above shows a generalised pattern of market cycles based on 24 hr/7days a week rhythm of human activities. Each cycle though is an abstract but can be taken as if it is satellite revolving around the Earth. For example Daily Cycle will always repeat itself at the end of each day, while the 7 days cycle will repeat itself at the end of 7 days.  Also 14 days, 21 days and 28 days cycles will repeat themselves  at the end of 14, 21, and 28 days respectively. In the same way we can view market cycles as monthly, quarterly and yearly (365 days). From observation, ironically, this is how market operates. Investors do not put in their money blindly they take profit, at the end of each day, week, month quarter or year. At the end of each cycle, the same process will repeat itself all over again. This eliminates the problem of waiting for some astronomical events to happen or looking for where and when market will reverse.  

Problem with Counting Waves

For examples many of Elliot wave followers repeatedly  acknowledged this problems and almost always state that one has to have a “trained eye” to really see when to go long and when to go short. You may, however get lucky and identify the “main wave”, nevertheless such ability to spot when market will rise or fall using Elliot Wave Theory are extremely subjective and are only discernible after the facts. 

To be able to know what goes on in each cycle, we will also need to zoomed into that particular cycle of interest and expand it to reveal its smaller cycles. The fractal structure of a cycle is actually a cycle within a cycle and is the same thing as the internal structure of markets. 

full-mountain

Figure 5: Internal Fractal Structure of Market Cycles

Fractal structure of markets in each cycle no matter the size of the cycle is fuelled by buy and sell sentiments of the largest market participants. These sentiments or emotions are controlled by God. Market sentiments are kind of warfare that takes places in the spirit world. And whatever the situation, these sentiments came into being because financial market exist because we human beings exists  because of the sustaining power of God (Heb 1:3). And the entire universe including to our Earth and everything therefore belongs to God (Psalm 24). We are subjected to God’s control and cannot escape His  gaze (Heb 4:13). He confronts us (Psalm 139), He exhibits His eternal power and deity (Rom 1:20), He displays His goodness, and He manifests Himself even in our own actions and reactions against Him, and in our own quests for financial prosperity. 

As with normal every other thing life, not all people wants to follows the way God set out things to work in the universe. Of cause there forces of dakness that also operates the market via deceptions - though we cannot see them but they operate via our mind sets to believe in false information about the market.This is called disobedience and always leads us to losses instead of profits. 

Only when our spirit mind works according to God's pattern do we succeed. The ways this plays out on a daily basis in the Spirit world shows on our trading charts just like a weather map which we can technically interpret as wave and fractal patterns (see course outline in Module 3). By looking at these patterns we can then tell when to go into a right market to buy or sell, and levels to take profits, only if we have the Spirit of the Lord in our hearts. 

This Spirit help us to accomplished many things: Among them; it helps us to trade like Jesus Christ! For the so-called scientifically minded traders, this may be hard to accept. But I have proved in this page that there is no any other force that have power or influence over financial markets except that of God. And that markets behaves not different from other things in the universe. Thus, we cannot accept this fact that financial markets are parts of the universe and the glory of God spoken about in Isaiah 40:5 without accepting in whose name this glory was created. Actually the glory Isiah was referring to is Jesus Christ in whose name all things were created.  In John 1: 3-4, the Bible said that all things were made through Him. Nothing was made without Him. Which means that to be able to understand how God moves the market we need to accept Jesus Christ who has the secret to everything in the universe and follows His standards.

Holy Spirit is one of the promise of Jesus Christ when He said that He will send His helper to us who will show us the secret of everything we need in life. As part of my bonus to the technical aspecting of interpreting charts In Module 3, you will also learn how to apply standards set by Jesus Christs while on Earth to handle common trading problems such impatience, anxiety, panic, fear, greed and covetousness, pride, self glorification, stwardship, risk management, over-trading, etc. 

When you apply God's patterns to your trading using Jesus Christs as an example, you will not only be profitable but you will have a domineering power over the market just as God has originally planned for us to do. 

Related links:

Fallacies of Wave Theories and Fibonacci Numbers

How God Brought Order out of Financial Chaos

Self-Similarity Behaviour of Financial Fractals 

Fractal Sensitive Dependence to Initial Conditions and Butterfly Effects

 

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Depending on your specific investment objectives and financial position, the investments discussed or recommended in this document and our web sites are for educational purposes only and may or may not be suitable for you. It is up to you to weigh any decision carefully, by consulting your lawyers, and more importantly, by putting everything as prayer request in the name of Jesus Christ to God for correct guidance.  God will surely provide you with the right answer. Past performances used as examples here are not necessarily guides to future performances and are no guarantee of future results. Income from investments may fluctuate. The price or value of any investment identified directly or indirectly in this document and our web sites may fall or rise against your interests and the interests of other investors.

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