Welcome to Butterfly Effect number two. People have been waiting years for this course, and I'm happy to say it is finally here. It has been a very long journey for a lot of people, and if you haven't seen the original Butterfly Effect, Future of Trading, and Blueprint, you need to watch those before you watch Butterfly Effect 2, as Butterfly Effect 2 represents some of the most advanced science work that I've done on these charts, and it's quite a long and in-depth course. It's going to be somewhere between 50 and 80 lessons.
not broken up. So in the original Butterfly Effect, you saw about three lessons were actually one full lesson. Butterfly Effect 2 is going to be broken up into multiple segments. It's quite a crazy course, and it's going to be somewhere between 50 and 80 lessons over the course of how I release it in the coming year. So strap in for Butterfly Effect 2 as it is a bulk of work to do.
And we're going to be talking about a lot of terms that you wouldn't otherwise know. if you didn't study my courses such as inverse moments or inverse levels, Pandora's boxes, origin levels, hold levels, break levels, a whole kind of criteria of science that I created with these charts. So it's really exciting today that I can start to show people a different way to look at the charts with Butterfly Effect 2. Now, one thing I want to tackle right before we get started is what if the world and everybody learned these sciences, what would happen? Would it make them inefficient and ineffective?
No, it wouldn't. Actually, they've been there since the 1800s. I'm just the person who has published the most elaborate and complete journal of this information to date. So it gives me the right to say that I kind of coined this information and I created these sciences while still respecting the right that I'm not the one who invented them.
I'm just the one who back engineered it. at its deepest, most accurate level, and not falling to these trend topics like smart money concepts, SMC, or things like Fibonacci, Elliott Wave, whatever new indicators, whatever flash in the pan kind of fly by night thing that changes whatever the trending topic is. It's not what we do here.
We use a hardcore set of science that's back-ended by years and years of myself testing this stuff. And yeah, I'm happy to share that with the world. So today, we don't learn any new.
types of levels, like say one of them that's going to come out in the future. Well, I won't give you the name yet, but we'll just call it the X factor level. We'll call it, again, this is not the name of a level. Don't start doing the X factor level.
We can make it a meme or a joke, but don't use it as an actual level. There is going to be information that comes out through the course of Butterfly Effect 2 that's going to be completely new types of levels and trends and different ways we look at the charts. But today I want people thinking.
A little differently when we think about day trading and stock charts. I want them to be thinking about how the charts actually work at the most fundamental level, which I think helps change the way we look at the charts and the way in which we interpret and try to decipher information. So today I'm going to be talking about a term that if you looked up, you wouldn't actually find it in a dictionary.
So let's jump right into Butterfly Effect 2 and get started on the first lesson. We're going to be doing a lot of talking. We're going to be doing this in one take. I think it speaks to the authenticity of the knowledge level.
And I've got a nice big water bottle here to help me go through this. So if I have to take a break to take a sip of water, please don't mind that. Okay, the first thing we're talking about is something called de-cycling. Now, de-cycling isn't a real word that you could actually look up in the dictionary. Rather, it's a mathematical term.
and it's the way that the charts, our day trading charts, were founded, and how they were created back from the very first moment in time, and kind of what founded and created these sciences. If you were to read, if you were to google de-cycling and read it, this is what it would say. It would say mathematics, the removal of cycles from a graph, noun mathematics, describing the smallest number of vertices that can be removed from a graph such that no cycles remain. So what this means is that you have a bunch of different data points or vertices on a chart, a bunch of different decision markers, you can think of it like that.
And you could say there's 10,000 decision points at any one given moment. And then after it goes through a tree of decisions, you know, we'll use a very simple example. if y were to equal true, then y.1 would be in existence. If it were to equal false, then y.2 would be in existence.
And then y.2 would have different increments of outcomes. And if y.2a were true, then y.2b could be false, which means y.1a. y.a1 would be the next set of decisions that would be made. So this is what we have to think about when we're thinking of cycles on a graph and vertices and data points with charts. So really, I want people to think back to...
futures trading and a lesson called cycles. And we're going to get back to that in a minute, but keep that thing in your mind, keep cycles and how we add things to our chart. Now, people have to realize that everything we do in the charts, every single piece of information that we do is de-cycling information. So what that means is that things over time remove possibilities to kind of come to these final conclusion points. very much for the reason why I call things polarity.
You'll hear me talk about polarity in a lot of my courses. I'll say, well, this move is polarized or, you know, you have to find the most polarized point or the most, you know, the level with the biggest amount of polarity. That's because all other decision points have been removed. And it's kind of a black and white moment where something breaks in one direction or completely supports and goes in a complete opposite direction.
it is the nature where something has de-cycled all other possibilities to one final amount. Think about an origin level. It has de-cycled all potential possibilities, comes to the breaking point of a move, and an origin level creates a massive breakout on your charts.
So this is the way people have to think. And I'm going to use that cycles example where things are constantly in this reductive type of nature. They're not in an additive type of nature.
I want you to think of cycles. And when we go through that future trading lesson, we do something like this, where we say a bottom has to be found, right? It creates your one, looks like the bottom was found here. And that kind of creates your buy spot. It's probably from a level from the past, the whole level right here.
Perfect, that's good enough for now. We don't need to work through timeframes to find that. But we do want to use the right colors because I don't want to have misinformation on the screen.
We always use purple for the weekly. you create your one, your one then creates a bounce to a target, right? And we're just going to assume the timeframe is here.
It's always accumulation to accumulation. We're going to assume the timeframe is here. That creates your two, you break your number two, you create a number three. So that would then, you know, adapt this to here, giving you kind of an adaptive trend, right? This is your kind of your classic cycle as it's taught in future of trading.
Now, when I taught this, it was neat because it was a way that I didn't have to. kind of go through this whole chain and hierarchy of how many decision points. And if you remember back to future of trading and cycles, I left kind of an interesting Easter egg in there that one day in the future I would talk about. And that was when I said, you know, sometimes cycles can have a five, a six, a seven or an eight. Well, there's a very specific reason I said that years and years and years ago, because I knew one day I would talk about the de-cycling nature of a chart.
so what happens actually is you would say well cotton wait a second you're actually using additive math so how can this be de-cycling because by having a trend that goes diagonally like this and by using an additive formula where you are where you are taking an event in time and you are making an additive conclusion how could this work it's not de-cycling at all it's actually um an additive form of math, not a reductive form of math. Well, that's actually not true because what would happen is you would have a bunch of different data points that would be created. And you're starting to think about, and we're going to use a very simple example for this.
We're going to say every portion of that cycle, one equals 1,000 vertices or 1,000 different kinds of outcomes. Now, if you had two, that would be 1,000 each, which would be 2,000, 3,000, 3,000, 4,000, 5,000, 6, 7, 8, 8,000, and so on and so on. So there's kind of a cool Easter egg that I left in Future of Trading.
And that is that I said sometimes it's 5, 6, 7, and 8. Really, we can actually see when it's 5, 6, 7, and 8, depending on how many vertices are created on the way down. So if you were to go for a very sharp move, you would likely have a smaller amount of vertices, possibilities that could be created from the chart. And when we're talking about possibilities and vertices, I want to just kind of mark a few of those out.
So if you had a move that you had a backside here, and again, let's use the right color code for these examples. You had a backside here and then you had a frontside here. These would be two different data points with information inside of them.
Inside of this weekly backside level, you would have a bunch of different ranges inside of this frontside level. You'd have a bunch of different ranges as well. We can go in here and see it. In that backside, you'd also have a daily backside, right? Like this.
Let's look at that differently here. you'd have a daily backside. You would also then have a daily front side.
And inside of that front side, you would have a four-hour chart. And inside of that four-hour chart, you would have the backside on the four. So now we can add that.
And you can start to see the picture of how kind of these vertices, and this is a very, very simple example. There's things I simply haven't explained on the charts yet that are in existence that I just simply haven't gone over yet. So we couldn't possibly know all that information.
And if we were to simply go back to the weekly, you can see that every time one of these data points is kind of created where you have possibilities that can affect the future. things that could be points of rejection, things that could come and make trends, right? If you were to come down here, find some kind of support off of this level back here and bounce up, it could hit this, it could go again and hit this, that could create a trend, that would be a certain amount of possibilities, it could come back, you know, hold some little hold level in here, break that trend, go up to here, pull back, come down here, hold this trend, yada, yada, yada. The list goes on of things it can do.
But the more vertices and data points that you have on your chart, actually, the more of a cycle you're going to go through. So if we go back to this example here, we take our replayer tool off and we start to think of now vertices controlling the charts. When you think back to future of trading and you think about cycles that were walking through a move.
you can now start to see how long an exact accumulation cycle will be. So like a lot of people, and in my career, I've been doing this half a decade now publicly in my career, I've been able to call out some pretty crazy things that have happened on the charts to the dollar and things like that. Well, there's actually a way to read how long an accumulation cycle can be. And that's to start understanding, hey, are we in a one, two, three, four, five? well, if we were, there would only be a certain amount of vertices that could exist here.
If you create more vertices, you're more likely in a six or a seven. If you create even more vertices, you're actually at an eight and maybe a nine, maybe a 10. So it's really interesting because if you think back to future of trading, which was released three or four years ago, there was kind of an Easter egg there that was left that was sometimes it's five, six, seven, or eight. And that day is kind of today when I am able to share that knowledge.
And that's due to the vertices that are on the chart. Now. This isn't the fact that you're using additive math. to change the trajectory of a chart.
You are simply saying, because again, if you were to break here and adjust the trend, you would be saying, oh, now you're using an additive formula. Well, it completely breaks the entire science. And that would be true.
If you're using additive math, it would break the entire science. Rather, it was easier to create a system where you say, oh, a thousand different possibilities could be labeled as one. And then the next thousand possibilities could be labeled as the number two, and three, and four, and five. So it gives people a very quick system. to figure out how to read a chart.
Instead of spending dozens of hours kind of going through this formula that doesn't really make sense, you'd be using 99% of your mind space and 99% of your energy to get a 1% return on that conversion of your own energy to a result. When you can simply just say, hey, we have a one, two, three, four, five, and this is the way a cycle works, you don't really need to know about all the vertices and data points. That's for someone like me to understand. who kind of reverse engineers all this stuff and then makes it usable for a public market, makes it usable for a group of people to say, hey, I understand cycles.
There's a reason why they work and that's perfectly fine. It's the same thing with the 12-hour candle, which we can get into a little later and why we use the timeframes we do. There's a very specific science and rule set.
And that's what this video is about, is about allowing people to see those deeper rule sets. Because when you start to understand why the charts work the way they do, you can really open up a lot of different decision points in your mind to understand what makes sense and what doesn't. So everything on the chart is constantly de-cycling from vertices and into these points of polarity. Now, let me take a quick water break here.
This all started back when charts were first. recording data. Now, if you think about time and space, time is, and here's another Easter egg for you. In, I believe it's future of trading, but it might be blueprint. One of those two courses, I talk about the two axes of the charts.
I talk about the vertical axis, which is the one most people pay attention to up and down, but there's also the horizontal axis, the left and right on charts. And if you were to kind of imagine. Bitcoin or crypto or any one of these markets.
Now we're on BTC USDT. This isn't all the history of Bitcoin. But if you were to imagine for a moment that this was the 1800s or even earlier when data was being recorded on charts.
the very first moment that occurred in the charts, if you think about time for a second, you can never go backwards in time. Time can only move forwards and time has a mathematical equation to it. So this is the beginning of what all of the sciences were built on in the charts, a form of de-cycling off of mathematics. So if time can only move forward, that means yesterday is older than today, which gives it kind of a hierarchical value.
It means that we have something that's older. It's its father, it's its grandfather. its legacy or global or local, as I like to say, to events that are much bigger and larger than it. So if you were to go back to the charts and cut it off right here, you'd have your first moment in time. And therefore time would be moving forward, giving you your very first mathematical value.
At that point, everything would be creating vertices of possibilities going forward in the charts. So if you were to just hit play and watch a chart evolve, you would now be creating vertices on a chart. And those decision points would create tops and bottoms from moments that happened in the past.
which are older than it, so you constantly have this arraying of time, a really interesting concept where you can backbone the entire way the charts work and all of the sciences off the idea of de-cycling because everything in the charts is de-cycling into these moments and points of polarity. So that's how I first figured it out when you're thinking of day trading and these charts. It was all about time and creating that first hierarchical moment that had a mathematical value. And that mathematical value would then start to create a science that could be used. So if you think about de-cycling, you can start to see where the first moment in time really onset the importance of how day trading was formed and how these sciences were first created.
One event that could happen in one moment that would be older than every event it created in front of it, therefore making it some type of grandfathering or hierarchical information. And then from there on, it would de-cycle against itself. until it came to these points.
That's the really most fascinating part that I find about day trading is that horizontal axis and why I talk about it so early in my courses because people have to really realize that price may move only up and down. but the expansion of time and moving forward has a directly communicatable path, almost like this is the walkway to price, right? Time as it moves forward, bumping our mics here, time as it moves forward has a direct bridge of information that communicates with the vertices and the possibilities on the chart. So really time in mathematics is how the sciences are built on the charts.
So when you understand that, it quickly allows you to start realizing that everything works in a form of de-cycling nature. Everything works against each other to de-cycle into these points of absolute execution. It's why when you have the top and bottom of a range of something, like you could take any moment here, it's why when you have the top and bottom of a range, any point, if your range was right here and this would be a weekly level, you'd have all sorts of vertices again inside of this, and you could go in here and you could go and find them all.
you know, make those decisions. And inside of this, you'd have a backside daily rate here, which would be like this red, and then you'd have a back front side, which would have levels inside of it. So we can just for fun, kind of go through this example here, you'd have a four hour inside of that and inside of that four hour.
You'd have a moment where you say, okay, well, there's a four hour inside of that daily, which would be right here, right? So you have a four hour inside of that daily. And what would happen if you looked for the hourly and you have all sorts of other levels here too. Reverse levels and stuff I haven't talked about yet. And then you could go and find the hourly information.
So now you have an hourly backside right here. We're going to mark that the appropriate color and copy paste that and you have an hourly front side and then so you could go back to your weekly charts here and see how there's all these different vertices of possibilities of what can actually happen on a chart, reducing itself down to a moment of polarization, a moment where you have no conclusions left of what could happen and then it creates that mathematical conclusion of the cycling where there are no vertices left. So you are now just expanding into a different decision tree because in this moment your decision tree looks like this. your decision tree is range here to range here it is below this but above this those are all your vertices and possibilities and this had likely back tested somewhere in here and if you were to break out of this final moment while you would be somewhere down into this because that expansion would now look like this instead you would be expanding to this um you know we're going to redraw that one because it's not very clear instead of you know a possibility like this, what you'd be doing is once you break past that moment, you're doing this.
You're opening yourself into a new set of vertices. So you're actually not adding anything to the charts. By doing this and then this, you're actually not adding anything new that were into the charts.
All you're doing is you're now starting to go back and go after these bigger vertices, which may have trend lines and all sorts of stuff like that. You're just going into the higher component of vertices, the overarching pieces, right? So then if you were to just hit play here, and I'm not sure if this is going to be exact or not, I kind of just do this stuff on the fly.
Let's just kind of see what happens here. If we hit play, you go right after that level. So you immediately go right at the exact same point, creating that instant moment of polarity because there was no vertices left in the chart. So it's really interesting when you can understand time as a founding component to science because, again, time created when the charts were first made back in the 1800s and even before that when data was first recorded.
Time created the first event that would have a mathematical hierarchical equation that it would then continue to build upon. Well, so like if tomorrow is younger than today, for example, today, the same time tomorrow would be one 24-hour cycle. but in a week, that would be seven of those, which would be a one-week cycle. So now we're grandfathered a weekly down to a daily timeframe. And then for four more of those weeks, well, it would be three point something, depending on how many days are in the month.
Let's pretend there's 28 days in this month right now. Three more of those weeks, and now you'd be in a monthly, which would be legacy to the weekly, which would be global, to the daily, which would be local. to that moment in time.
So again, time was the founding piece to this. So whenever you're thinking about day trading, you have to realize every single component of the charts that we have were created from time as a theory. And time, again, having a hierarchical, mathematically equatable.
piece that it was creating on the charts. It is the format of de-cycling, quote unquote. It is exactly what it represents, vertices that come to polarity points. And now if we read that same thing again, if you go and Google de-cycling again, the removals of cycles from a graph, describing the smallest number of vertices that can be removed from a graph such that no cycles remain, giving you those explosion points.
Fireworks happen, right? So no matter what we do going forward from this moment and looking back into future of trading, looking back into blueprint, looking back into the original butterfly effect, realize that everything was de-cycling from larger moments. That's an important distinction to make because it allows you to see them clearer. And now I think everybody understands why I said. If you were to go and do a cycle where this were to be the one and it would create the resistance point right here, which would be the two, you create a trend.
This comes back, hits some kind of other support, makes a three and breaks this. You are adding a new piece to the chart. You are adding the number four.
This would be additive math. It would break the entire chain of the science. Well, the reality is this vertice always existed. So that was a possibility.
And again, there's not really a good conversion of time and energy we spend. into kind of breaking down this elaborate formula where you're cross-analyzing thousands of decision points for 12 hours at a time, it doesn't really give you a conversion that makes sense. Instead, you create an easy shortcut system like cycles that may appear counterintuitive after hearing this because it's like, well, cycles are additive.
Actually, they're not. It was just a shortcut system made, which is a really cool moment to have right now because it's like, in the past, we knew we would talk about this one day. here we are three years later talking about what we set up in the past is like an easter egg so it's kind of just this like cool thing and we can kind of move on um from that and and so that is really what we have to think about when we're when we're thinking about time as an effect and the de-cycling nature of charts now let's get into why we actually use these time frames up here because this also has to do with the mathematical equations which is a very cool thing um you know when Bitcoin charts were first around. You know, we can go to more of a, oh boy, it's been a long time since I've been to this one.
We can go to more of a legacy chart and to XBT, which was BitMEX's old legacy ticker. We can go to more of a legacy time on this. And there's actually older charts in this, but that's fine. We can use XBT for this.
There's kind of a cool shift that happened in, I believe it was right at the beginning of Butterfly Effect. People had seen me using the 12 hour candle for quite some time and they were wondering why all of a sudden I stopped using it without saying anything. I'm just like, we don't use the 12-hour candle. It doesn't matter why, we just don't use it anymore. I want you to imagine that time, again, is the dictator of this kind of idea here.
So in the very first inception moments of Bitcoin, it was a brand new market. And if you ever noticed, I will never use a 12-hour candle in any of my courses going back to five years ago. I'll never use them on stock markets.
Never once. Will you see that? Maybe once or twice, but I don't even think so.
I'd have to really... kind of comb through the videos with a very specific eye to say, oh yeah, cotton, you used it right there in that exact moment. But it's very unlikely that I actually did it because it would have never made sense to use a 12 hour candle. And I'm going to explain why we use the timeframes we do and also why there was a moment where I just stopped using the 12 hour and it was like, I sometimes use a six and I sometimes use a 12 because they were divisible against each other. So this is another really cool Easter egg moment where we can look back and in the past, it would have been like, oh, in a few years, we'll be talking about this.
And now here we are, right? So what happened is this. In the past, when Bitcoin charts were first...
creating data. Because it's a new market, what happens is you actually wouldn't have even been able to use a 12-hour candle to start. There was no data to back implement that off of.
You would have had to start with one-minute candles, then three-minute candles, then five-minute candles. And after enough time had passed, you'd have to use a 15-minute candle. And then the 15 would be your most legacy level compared to the five-minute, which would be the local, and the three-minute, which would be the global level. and so forth and so forth, which would phase out, technically it would phase out the one minute candle as being usable on the chart the second you had the 15 minute candle, because you have your three-tier setup and the way that the Decycling Mathematics work.
you have your perfect three-tier setup where you have legacy, global, and local. I always say them in the wrong order. I always say global, local, legacy. Just an ABCs thing for me, I suppose.
But in that form, you'd only have three grandfathering timeframes. So as time was passing on Bitcoin, what had happened is the four-hour would eventually be used as your kind of grandfathered time frame, right? It would be your legacy time frame on a four-hour cycle.
So enough time had passed and this would be, for mathematic reasons, this would be your legacy time frame of four hours. So you could kind of go into Bitcoin and find those moments where it would take you a long time. It's not something I'd advise doing.
There's no real value in doing it. The value is kind of just in knowing the why and not understanding the how. You'd use your four-hour time frames and that would become the most legacy level. And then after more time had passed in Bitcoin and the charts were continuing to evolve and more and more information was being created, it would eventually go to a 12 hour time frame and 12 hour would be, you know, your legacy time frame, the highest time frame that could be available. So for a long time, actually.
Bitcoin could use a legacy level of 12 hours and then enough time passed by. And then the daily would now take over as the legacy level and the 12 hour would be the global level. So that worked perfectly fine. So there was a time and point in Bitcoin where that legacy level, it was perfectly fine for it to start as a 12 hour because that would have been the first time frame that would have been created of the highest time frame in that moment due to the effect of time and how.
you know after four hour the next is 12 hour because a 12 hour candle is divisible by four sorry is a divisibility of four in increments of three which we'll get into a little bit later And then so your 12-hour candle would eventually over time be phased out as we had daily information come and then weekly information come and then monthly information come. So there was a moment in time in Bitcoin that as soon as the monthly candlesticks were able to be formed and there was enough data there, and I won't get into the exact criteria, that's some of my secret sauce, the exact criteria of how long and why that makes sense, the moment that the monthly candle could be formed. that would be the moment that the monthly would be the legacy, the weekly would be the global, and the daily would be the local, therefore phasing out the 12 hours.
So there was a neat kind of shifting moment in Butterfly Effect 1 where all of a sudden I just stopped using that 12-hour candle and everybody had always been asking why. By me telling you this, it doesn't really give you any usable knowledge. So when I tell people, it doesn't matter why, just don't use it. If I tell you, it's going to waste my time. I don't want to get into it.
There's not really a point to this. It's a story I don't want to repeat every time I stream or every time I do a video or a session. There's no value in knowing why it matters. There's nothing there to use.
The only thing that matters is you don't need to use it. So you could go down this long trail of trying to engineer timeframes and then you would just come to the same conclusion as I should have just listened to cotton because it's such a useless information. I don't need it. And I'm going to get into the reason why we use the 1-3-5-15-1 for daily, weekly, monthly candles as well. So.
if you think about time and the effect of what it has, you have a one-minute candle. And this is exactly why we don't use anything under the one minute. Well, there's actually other reasons, but we won't get into that maybe later in Butterfly Effect.
But for now, trust me when I tell you, it doesn't matter why, if I send you on this big, long journey of information seeking, you're going to come out of it just saying, Cotton, you were right. It didn't matter why. She's not giving me any value or helping me in any way. I now know after months of engineering timeframe data that I don't use anything under the one minute.
Thank you. And I would say, why? I could have told you that, but I actually did tell you that.
It was just, you decided to go and kind of do this information seek, right? So. let's not get hung up on that, but let's talk about why the 1, 3, 5, 15, 1, 4 daily, weekly, monthly to kind of put an end to that.
And this again goes back to the beginning of when the charts were made and how you would find this information out is you would actually have to go and engineer time and understand time at a deeper level. Thankfully, it's time is a subject I've studied all my life with my father, and it's something I've been very interested in. So time really for me was a...
pretty big impact around the charts. And even in my earliest work that people see on YouTube, it's like I talk about the horizontal axis, like it's going out of style. The horizontal axis, it controls it all. There's a reason why.
And I knew that one day again, another one of these cool Easter egg moments, this video is going to be filled with those. One day in the future, I'd be able to say, you see, three and four or five years ago, I talked about this and this is why. Let's think about this for a second.
the one minute candle has three units of measurement to get to the three minute candle. So if you were to take the one minute candle and multiply it three times or add it up three times, you would get a relationship between the one and three. Now, if you were to do the same thing to the five minute candle, you'd get a relationship of five units of measurement.
Now you have some basis of mathematics to start developing timeframes on. And if you were to take five three minute candles, you would have a relationship to the 15, which back connects to the five minute candle. and that same formula of five of these candles has a relationship from the one to the three because three one minute candles makes up of one three minute candle and five three-minute candles makes up of a 15-minute candle and five one-minute candles makes up of three 15-minute candles kind of going in this big loop of shared relationships between one three and five and which ends up being the founding pieces to create the charts in their entirety as one of your first blocks into discovering what time frames would be and then you'd go deeper and deeper and deeper into this kind of chain of adding time frames and realizing that, you know, the next number in the equation is four because you've got four 15-minute increments, which equal a one hour, and then you have you know, a one hour increment, which four of those is now a four hour increment. And then you end up trailing back to this three where the four and the three minute relations relate, have a relationship because three increments of four ended up being the 12th. And then, um, four, eight, 12, 16, 20, 24 was also a divisible of six, which goes back into, um, being at the daily candle now.
And then there's a division equation you do that's between three and six that. is divisible into four. And this is why we only use those timeframes and nothing else. So actually, if you were to go and update this, what you could do is you could do this. We could take that out forever because we no longer use the 12 hour timeframe for reasons that it doesn't need to be on our charts anymore.
So the only timeframes you'll ever need to use are the one, the three, the five, the 15, the one hour, the four, the daily, the weekly, and the monthly. and those are the timeframes we use. We won't be able to use the 12-month anytime soon on Bitcoin, therefore not phasing out the next timeframe, that we would logically phase out, which is a little counterintuitive in this scenario because of the way the mathematical formula works. You would think it would be daily, and it actually wouldn't. It would introduce a new timeframe, which is something I won't even get into.
because it's so far out of what we're on about with this lesson, and you're getting down into this kind of mathematical thing where I just only want to give so much information about, you know, how I figured out what I figured out and the whys behind it. So now, if you ever go look at stock charts I do from the past five years, you'll notice there was never a 12-hour candle that I used, or a 12-hour trend, for the reason that stock charts are much older, so this is a time frame that was never in play to begin with. And it would have been in the inception of some of these charts, but the S&P and all the stock charts have been here forever, so there's no point that would be now or any time in the current space that the S&P wouldn't control the stock markets. as to where you would actually use a 12-hour candlestick or trend inside of anything in stocks.
So very interestingly enough, another thing controlled by time and vertices and the fact that time has a mathematical hierarchical value and why we wouldn't use anything under the one minute. Again, we don't want to go into the whys. Trust me on that one.
We don't use it. So that is a huge deep dive into timing and why timing works the way it does. in the next lesson in Butterfly Effect 2, we're going to be talking about the three lanes of analysis that we actually live in, which is insanely interesting and is going to be another kind of theory lesson like this, where we kind of go deeper into a theory onset of what it actually means to day trade differently. And that's going to be a fun one. And that's it for the very first episode of Butterfly Effect 2. See you on the next one.