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Triadic Logic
Psychology • Structure • Energy Flow — a framework to trade what the market is feeding, not just where it’s moving.
The Three Pillars
Algorithms
Fast, mechanical systems that execute with precision and exploit micro-inefficiencies. When they’re in control, price respects structure.
Emotional Flow
Impulsive participation (fear/greed) that stretches price into extremes—creating the liquidity professional flow feeds on.
Strategic Trader
Waits, observes imbalance, then engages only when odds align with structure, tempo, and session dynamics.
Market Temperature — RSI as the Thermostat
- RSI > 70 → Hot: greed & overextension. Expect cool-off or structured continuation only with confirmation.
- RSI < 30 → Cold: fear & panic exits. Watch for balance return before entries.
- RSI ≈ 50 → Balance: algos regain control; this is where high-probability setups emerge.
Dominance Detection — Algos vs. Gamblers
Greed dominance pushes price outside the 2-deviation Bollinger Band (on the 50 MA). We don’t chase. We wait for the cool-off.
As energy normalizes, price returns toward structure:
- 20 period Moving Average — trigger line for momentum shifts/rejections
- 50 period Moving Average — core equilibrium/pullback zone
- 200 period Moving Average — institutional magnet/major imbalance
Algo control = price back inside structure, volatility contained, and entries can be timed with tighter risk.
Bollinger Bands (2-dev on 50 MA) define emotional extremes; structure provides the map back to balance.
Where We Hunt
Primary focus: Nasdaq (NQ) during the New York session where volume, velocity, and psychology peak.
Every decision filters through who’s in control (algos vs. gamblers) and what phase the market is in (fear, greed, or balance).
We don’t chase price. We wait for alignment.
When the temperature cools and control shifts, the edge reveals itself.
From Balance to Extremes
Markets move in a cycle: balance → imbalance → gambler extremes → algorithmic logic. Balance begins when price trades in structure. Imbalance occurs when emotional traders chase price into overextension. Extremes form at the edges — fear-driven collapses or greed-driven spikes. Finally, algorithms step back in to restore order.
Strategic traders hold the key. They recognize this cycle, avoid chasing extremes, and align with structure when the energy shifts. By waiting for balance to return, strategy traders execute where risk is defined and probability is highest.
Risk Disclosure: Trading involves substantial risk. Past performance is not indicative of future results.