When you look at a price chart of a security trading at new all-time highs — it can feel like you’re staring into outer space. Like there’s this endless vacuum where price can float in any direction at any pace.
But that’s not actually the case.
If you bring in a little bit of simple physics, you’ll see what I mean. I’m talking about magnets.
The Magnets On Your Charts
Think about the most basic magnet you know — maybe one on your fridge holding up a family photo or invitation.
On your price chart, there are similar “magnetic” areas that can be predetermined and pre-calculated. All that white space isn’t as open as you think. There’s an invisible grid out there. And if you learn to identify the framework and project it forward, you’ll start being able to spot turning points before they happen.
Every magnet on your chart has two coordinates: price and time.
That’s where you begin.
Why Forecasting Works
I get into my step-by-step approach to finding those magnets in the Lost Forecasting Trading System, but here’s the gist:
- These magnets help you forecast where a security will trade to (the price) and by when (the time or date).
- Market Forecasting is extremely useful though it’s not an exact science – because cycles expand, contract, speed up, slow down, and shift left and right.
- Even with those changes, magnets still give you a framework — so you’re not flying blind.
The key is that forecasting gives you confidence. You can know what areas may attract the price action towards it, and you can know how to manage your analysis or trades when the market doesn’t follow the forecast perfectly.
What to Look For
I often tell students to start with a simple exercise. Pull up a daily chart of your ticker of choice — about six months of price history going back from today.
Look for the significant highs and lows. At each of those, observe:
- Did the market turn sharply in a V-shape?
- Did it roll over slowly?
- Did it turn after a long consolidation?
Just notice. Those past turning points were magnets. Recognizing them in hindsight primes you to locate new ones in advance.
Opening Your Mind to Magnets
So, is it really as simple as identifying magnetic areas on your chart?
Yes! That’s why I sometimes call this my “magnet system.”
Not every magnet will be touched exactly — and that’s okay. What matters is that you have a roadmap. You’ll see where price might be pulled, and you’ll be prepared for shifts along the way. If you’re curious to go deeper, I show you exactly how to calculate and apply these magnets inside my Lost Forecasting Trading System. But even just starting with the six-month chart exercise, you’ll begin to see the power of “magnets” in your own trading!
~Hima
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