The following interview transpired between Larry Jacobs, Editor in Chief of TRADERSWORLD Magazine and Catalin Plapcianu in the Spring of 2011. It was published in Issue #49, June/July 2011.
My name is Plapcianu Catalin. I am a trader, researcher and developer in the field of technical analysis. My background is engineering (civil construction engineer) with a master’s degree in International Business in Geneva, Switzerland.
I was introduced in the markets by a professor in my Construction University. He was all time talking about the markets and the “whys” of them going either up or down. It looked tempting first to enter into such a domain because I thought it is not a big deal to trade the markets. What is easier than buy or sell? After loosing a good amount of money, time proved to me that this is the most sophisticated domain ever encountered (by me at least), encompassing more than 5 different domains (music, astronomy, physics, mathematics and technical analysis) in which I am studying. First I started with the fundamental analysis, which proved inefficient because markets were progressing differently than their P/E ratio and other fundamental factors. After a short while I started into technical analysis. After a short while of testing the indicators (RSI, Stochastic, etc.) I noticed their huge lag. Some indicators were showing a hidden order in the market (Fibonacci retracements, Fibonacci fans, etc.), which sparkled my attention along with Mr. W. D. Gann’s smashing trading record and the controversy around it.
The last 3 years of my life were completely devoted to the study of the markets in the deeper sense. I found 5 other people, which discovered the exact same law, which W. D. Gann discovered. One of them is undeniably George Bayer. His work is very objective and gives a great deal of insight into how the law of rhythmic balanced interchange works. The applications in his “George Wolsten” to the markets are very good. I have discovered and unveiled his “Jiggle Line” which I explained in my course. But not the study of the works of the masters in particular gave me the deeper insights. The correlation of mathematics and physics with the markets made me want to continue finding the order. The effect of market movement, as well as the “why”, can be explained through physics. Markets can be perceived like systems with different capacities of energy. By expanding and contracting the total amount of energy in the system the markets go higher or lower. By expanding more energy on a move, a counter balancing force will put the market back on its track.
I admire his devotement to spend 10 years of life to study the “why” of things. He understood that 7 basic colors can make a rainbow, 26 letters in an alphabet can make a language and with two opposing forces (buy and sell) and a time factor you can make a market. He was a man that encouraged study of the law that governs us. He gave even clues where to look for this law, for there are times where this law is visible in some domains and invisible in others, but looking at the movement of the atom and the electromagnetic effects gives the exact principle of the working of the law.
Without any doubt he did. People close to the markets can testify that by using leverage and getting into a trend, huge amounts of money can be made. By knowing the exact turning points of a market can give unlimited possibilities to traders. In fact, this is what everybody is in search for, turning points.
To answer strictly to the question, yes he did use celestial mechanics to trade with. The study of celestial mechanics is the study of a system. Markets are systems, which move in a regular fashion like planets do. Markets are a 2-dimensional representation (on our charts) of a 3-dimensional movement.
If we can measure a move we can measure also its counterbalancing move. If a move exceeds its limit, the counter move will be in an exact opposite calculable proportion to balance the energetic potential level. Think of water waves. If you throw a piece of wood you create waves with peaks and troughs smaller than if you throw a barrel. The market is formed of cycles of different lengths. If there were no “barrels” or “sticks” thrown, there would have been just perfect harmonic cycles. I have discovered that an impulse changes the length of a harmonic cycle within a measurable extent. Depending on the impulse comes the measurable reaction in both time and price. This phenomenon has the exact simile in music: as frequency increases string length decreases and as frequency decreases string length increases. I think Mr. Gann had a very good understanding of these phenomena and their application into the markets. Applying these rules on a daily basis is no different in applying them on an hourly or even a minute chart.
Like Walter Gorn Old (Sepharial), I devoted my time to demonstrating that there is no such thing as luck, and there is not. I have proved to myself and to others using my knowledge that markets are predictable and random events do not have a place within anything in the universe. For the moment I have left the development side apart and I am continuing my studies in the fields mentioned above. Regarding markets, it is difficult to say in a few words definite trading rules, though in my course “TECHNICAL ANALYSIS AND TIME PROJECTION THE HARMONY OF MATHEMATICS & NATURE” i am giving direct applications to the markets using market equations, astrological time resistance points and the last discovered tool, George Bayer’s “Jiggle Line”.