Cycles, trendlines and the natural order of things

There are many ways to skin a cat in the markets, and all ways lead to Rome if the path to Rome is less traveled.

In other words, one only has an edge if one's perception of the market is not overused by others as well.

The two main roads to Rome (the elusive consistency over multiple sample sizes, such as a high hit rate with great expectancy) are Fundamental analysis and technical analysis(TA).

In both categories are plenty of subcategories in which various choices are again to be found.

So, for example, in Fundamental analysis, one can work with ratios, and there are many different ratios to be found under which one can perceive the market.

e.g.:

https://site.financialmodelingprep.com/investment-valuation-ratios/NOC

In technical analysis, charting is a standard tool to represent market behavior, and one familiar charting tool is trendlines.

https://www.investopedia.com/terms/t/trendline.asp

The most common trendlines are linear, logarithmic, polynomial, power, exponential, and moving average.

e.g.:

https://www.thedataschool.com.au/alex-taylor-jackson/the-5-different-trend-lines-explained/

And on and on, it goes down the rabbit hole of endless choices. A trader can feel overwhelmed by which tools to focus on and finally use in his arsenal to meet the market.

One way to increase edges is to look where others don't. We discussed looking at time and cycles rather than price and support resistance.

Another way is to look at nature and mimic what the universe already presented as functional.

Examples are Fibonacci ratios, seasonal patterns, human behavior(investor confidence), and action/reaction principles.

Regarding trendlines, we find an approach blend of cycles and natural order trendlines useful. This lesser-used method allows for personal interpretation and variant application.

Purists might criticize the integration of contraction/expansion principles. Still, I find representation clearer and have a different view of nature interpretation from a rigid scientific approach but rather try to come as close as possible to nature itself.