15 min read
Lesson 0 of 9

What is Rthmn?

Rthmn's core idea is recognizing that markets have a fractal structure - patterns that repeat themselves at large and small scales, creating self-similarity across what we conventionally call "timeframes."

Fractal geometry teaches us that certain structures in nature - coastlines, snowflakes, tree branches, blood vessels, - all display self-similarity at different scales. Zoom in on a small section of a leaf, and you'll see the same pattern that defines the entire leaf. Markets demonstrate this same property.

The same patterns in uptrends and downtrends that you see on a monthly chart repeat itself inside each month, inside each week, inside each day, inside each hour - all the way down to the smallest measurable price movements.

It's not just that the patterns look similar across all timeframes: They are mathematically the same underlying structure.

Rthmn makes spotting trends on all timescales intuitive by recognizing markets as a nested grid of price ranges, each range being either Up or Down. (Positive or Negative).

Rather than arbitrarily dividing the market into time-based segments like you would in time based trading, we take an opposite approach.

By identifying the structural changes in the price as it changes across all ranges, from larger to smaller exactly as it's happening. This also means that Rthmn is one of the most realtime algorithms available as there is no lag in between updating these price structures.

Rthmn doesn't attempt to predict precise price targets or timing either. It focuses on reading current market structure across all scales simultaneously, identifying which direction has the highest probability right now based on range alignment, and recognizing specific sequence changes that indicate potential shifts in that structure.

This shift - from prediction to structural reading -transforms the trading experience. Instead of constantly guessing what might happen next, you're responding to what is actually happening right now across all scales of market activity.

This brings a clarity and confidence to trading that conventional approaches rarely achieve.

Markets as Living Systems of Switches

We've discussed how time-series trading often adds more confusion than it does help - and now we present a new idea.

Imagine the market not through the lens of time-based charts, but as a precise system of fixed price ranges stacked within each other. Each range represents an exact, unchanging measure of price movement and exists in one of two states: positive (making higher highs and higher lows) or negative (making lower highs and lower lows).

These ranges nest within each other in a hierarchical structure:

  • Large ranges encompass significant trends - "Weekly or Daily trends"
  • Medium ranges track intermediate swings - "4HR movements"
  • Small ranges follow shorter movements - "1H - 15M price action"
  • Micro ranges detect immediate price action - "Second - Minute fluctuations"

At any moment, each fixed range has its own state. A large range might be positive while nested medium ranges show negative states, and smaller ranges fluctuate between states. This creates a complete "state map" of the market across all scales simultaneously, using consistent, unchanging measurement units.

Think of it like a Russian nesting doll, where each larger range contains smaller ones within it. At any given moment, a large range might be in a positive state, containing medium ranges alternating between positive and negative states, while the smallest ranges rapidly switch states as price fluctuates.

This natural organization of price movement reveals market structure with extraordinary clarity. Instead of wrestling with conflicting signals across different timeframes, we simply observe the current state of each range and how these states align or conflict across scales.

The power of this approach lies in its ability to show you the market's actual structure, not its time-based approximation. When multiple ranges align in the same state across different scales, we can identify high-probability directional movements with remarkable precision. When ranges conflict, we understand exactly where and how the market is in transition.

When you view the market through this consistent, unchanging structural lens, the self similarity of trends across all timeframes becomes immediately clear.

Alignment: When Ranges Speak with One Voice

The most powerful insight emerges when we observe how these range states align—or don't align—across different scales of market activity.

Imagine you're watching the market and notice the large ranges are pointing up, but some medium ranges have turned negative. Most traders would see this as confusion or choppiness. But here's where Rthmn thinking reveals something powerful: by zooming in to smaller ranges within these conflicting areas, you often find perfect alignment forming in the new direction.

A large range is showing an uptrend

  • Price is making higher highs and higher lows at this scale
  • This suggests bullish pressure on the larger scale

But some medium ranges are in a downtrend

  • As price moves up in the large range, it encounters resistance
  • These medium ranges are making lower highs and lower lows
  • This creates what appears to be conflicting signals

Now here's where it gets interesting: within those medium ranges, as you zoom into smaller and smaller ranges, you might start seeing some ranges flip back to uptrends. This creates a nested structure of opportunities:

  • You could trade the smaller range's uptrends within the medium downtrend
  • You could trade the medium range's downtrend when price hits resistance

This pattern of conflicting highs and lows across different ranges is actually a fundamental market characteristic. Every trend, regardless of size, (not always) creates higher lows (in an uptrend) or lower highs (in a downtrend) when maintain its direction. When these points conflict across ranges, they create natural trading opportunities.

This multi-dimensional view of market structure means you're never limited to trading in just one direction or on one scale. The market is constantly creating these nested opportunities as ranges conflict and resolve across different scales.

Understanding this pattern of conflicting highs and lows across ranges is crucial because it shows you exactly where to look for potential reversals and continuation moves. It's not about predicting - it's about recognizing these natural market structures as they form.

What Is Rthmn?