Reflexive Symmetrical Architecture (RSA): A Unified Theory of
Price-Time
Adiyat Coto
[email protected]
adiyatcoto.github.io
Abstract. This whitepaper introduces Reflexive Symmetrical Architecture (RSA), a
comprehensive theoretical and practical framework for advanced market analysis. RSA
unifies price-space and structure-time into a single, cohesive model by integrating two
core components: Reflex Range Architecture (RRA), a dynamic model of spatial price
behavior based on volatility projection, and Chronos Cycles, a fractal model that
delineates the narrative structure of temporal sessions. The system categorically rejects
static, predictive tools, instead visualizing the market as a dynamic field where price
expands and contracts symmetrically around an ever-evolving, real-time equilibrium.
The entire architecture is derived from a single, axiomatic first principle—The Axiom
of Binary Division—which posits that all market structures are subject to recursive
division by two. This axiom is applied to both price, generating a responsive volatility
map, and to time, creating a predictive four-stage session rhythm. The synthesis of these
two dimensions creates a high-resolution map of the market's spacetime fabric, allowing
analysts to identify and anticipate high-probability structural events, inflection points,
and state changes with unparalleled clarity and precision across all asset classes.
Preface: A New Paradigm for Structural Analysis
Traditional technical analysis relies heavily on static indicators and historical price points, often failing to
account for the dynamic, reflexive nature of modern markets. Price discovery is not a linear process governed by
fixed coordinates but an emergent property of a complex system. Conventional tools often fail because they
attempt to impose a rigid, linear order onto a fundamentally fluid and chaotic environment. Reflexive
Symmetrical Architecture (RSA) is presented as a new paradigm for structural analysis. It is built on the first
principle of recursive binary division, a concept fundamental to fractal geometry and chaos theory. By applying
this single, unifying principle to both price-space and structure-time, RSA provides a logically consistent and
dynamically adaptive framework for mapping market structure as it unfolds. This paper does not propose
another predictive indicator to be added to a cluttered chart. It details a comprehensive architecture for
observing and interpreting the emergent geometry of market behavior.
Part I: Core Framework
1. The Core Principle: The Axiom of Binary Division
The structural integrity and internal consistency of Reflexive Symmetrical Architecture rest upon a single,
self-evident truth: The Axiom of Binary Division. This principle posits that any whole unit within a market
context—be it of price potential or time duration—is subject to a natural, recursive division by two. This is not
merely a mathematical convenience; it reflects the market's fundamental state of duality that governs all activity:
buy vs. sell, expansion vs. contraction, fear vs. greed, order vs. chaos. Every complex market behavior is an
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emergent property of this irreducible, binary foundation.
a) Application to Price-Space (The Quantum of Volatility): The process begins with a whole unit of
market energy—the captured volatility of the previous trading session (100% of its range). This
unit is first divided by two to define the primary 50% expansion boundary, the first-order
expression of balance. This is then halved again to yield the 25% quantum (qv), a fundamental
constant of volatility. This quantum becomes the essential, discrete building block for all
subsequent RRA levels, ensuring that the entire spatial map is proportionally and logically derived
from a single source of information. While this recursive division could theoretically continue into
infinitely smaller fractals (e.g., 12.5%, 6.25%), the 25% quantum is adopted as a pragmatic limit.
This choice balances theoretical purity with practical usability, preventing the visual clutter that
would arise from an excessive number of levels on a chart and ensuring the framework remains a
clear and actionable map.
b) Application to Structure-Time (The Rhythm of a Session): The axiom is applied with equal rigor
to the time axis. Any trading session, regardless of its duration, is first bisected into a 1st and 2nd
Half. These halves are then bisected again, yielding four distinct temporal phases, or quartiles. This
establishes the market's "heartbeat"—a predictable, four-stage rhythm that allows an analyst to
anticipate behavioral shifts as a session matures from its initial, uncertain probing to its final,
decisive resolution.
2. The Spatial Dimension: Reflex Range Architecture (RRA)
Reflex Range Architecture (RRA) is the spatial component of RSA. It is a dynamic cartography system that
provides a real-time map of the market's volatility field, rejecting static lines in favor of a responsive, living
structure that adapts to price action second by second.
2.1. Conceptual Foundations
a) Dynamic Equilibrium (EQ): The EQ is the absolute center of the session's price field. It is not a
pivot calculated from the past, but the living, gravitational center of the present, calculated
continuously as the arithmetic mean of the session's evolving high and low. It represents the point
of "fair value" or perfect balance toward which price is perpetually drawn by mean-reverting forces.
All price movements can be interpreted as an excursion away from, and an eventual return to, this
dynamic midpoint.
b) Symmetrical Envelopes: Price expands from the EQ in mirrored, holographic layers of potential
energy (R-levels for resistance, S-levels for support). These are not price targets but energetic
boundaries that define the probable limits of expansion and contraction based on the energy of the
previous session. Their perfect symmetry reflects the principle that for every bullish impulse, there
exists a latent bearish counter-impulse of equal potential magnitude. They map market elasticity.
c) Spatial Memory and Polarity: RRA posits that price-space is not an empty void; it is a landscape
etched with the memory of past events. As price interacts with an R- or S-level, it energizes that
zone with significance. Upon a future retest, that zone will act as a high-probability reaction point,
with its polarity often inverting (a broken support level becomes resistance, and vice versa). This
demonstrates the principle of structural memory, a key component of reflexive market theory.
2.2. The Asymmetrical Anchor Principle
A key innovation separating RRA from all other pivot-based systems is its method of projection. Traditional
systems project outwards from a static, central point. RRA uses a dynamic, "outside-in" asymmetrical anchor to
model the living tension between opposing market forces:
a) Resistance (R-levels) are projected upward from the current session low (Lc). This anchor
represents the confirmed point of bullish capitulation or the base from which buyers mount their
advance.
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b) Support (S-levels) are projected downward from the current session high (Hc). This anchor
represents the confirmed point of bearish capitulation or the peak from which sellers assert
control.
This unique construction creates a functional envelope where the upper and lower boundaries are actively
pushing and pulling against each other. It effectively models a field of tension, with the EQ serving as the precise
gravitational midpoint where these opposing forces find their fleeting moment of balance.
2.3. Mathematical Formulation
The architecture of the RRA levels is derived from a set of clear, sequential calculations.
a) Core Variables
Let us define the foundational variables for any given session:
Hc= The current session's highest price.
Lc= The current session's lowest price.
Hp= The previous session's highest price.
Lp= The previous session's lowest price.
b) The Volatility Unit
The core unit of measure is the range of the previous session. We define this as the volatility unit,
Vu. It represents the total energy expended in the prior period.
Vu=Hp−Lp
The 25% quantum, or fundamental constant of volatility (qv), is therefore:
qv=0.25×Vu
c) Equilibrium (EQ) Derivation
The Dynamic Equilibrium is the gravitational center of the session's established range.
EQ=(Hc+Lc)/2
d) Full R/S Level Calculation
All levels are projections from the asymmetrical anchors (Lc for resistance, Hc for support) in
multiples of the volatility quantum (qv).
i. Contraction Zone: Represents market indecision or energy consolidation.
R1=Lc+(2×qv)=Lc+(0.50×Vu) => 50% Ceiling
S1=Hc−(2×qv)=Hc−(0.50×Vu) => 50% Floor
R2=Lc+(3×qv)=Lc+(0.75×Vu) => 75% Ceiling
S2=Hc−(3×qv)=Hc−(0.75×Vu) => 75% Floor
ii. Neutral Zone: Represents a "fair" or complete 1:1 extension of the prior session's
energy.
R3=Lc+(4×qv)=Lc+(1.00×Vu) => 100% Ceiling
S3=Hc−(4×qv)=Hc−(1.00×Vu) => 100% Floor
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iii. Expansion Zone: Represents trend enthusiasm, climactic movement, and potential
exhaustion.
R4=Lc+(5×qv)=Lc+(1.25×Vu) => 125% Ceiling
S4=Hc−(5×qv)=Hc−(1.25×Vu) => 125% Floor
R5=Lc+(6×qv)=Lc+(1.50×Vu) => 150% Ceiling
S5=Hc−(6×qv)=Hc−(1.50×Vu) => 150% Floor
R6=Lc+(7×qv)=Lc+(1.75×Vu) => 175% Ceiling
S6=Hc−(7×qv)=Hc−(1.75×Vu) => 175% Floor
R7=Lc+(8×qv)=Lc+(2.00×Vu) => 200% Ceiling
S7=Hc−(8×qv)=Hc−(2.00×Vu) => 200% Floor
R8=Lc+(9×qv)=Lc+(2.25×Vu) => 225% Ceiling
S8=Hc−(9×qv)=Hc−(2.25×Vu) => 225% Floor
… possible to be expanded up to 400% Ceiling and 400% Floor
e) Worked Example
Assume the following price data for EUR/USD:
Previous Day: Hp=1.0780, Lp=1.0700
Current Day: Hc=1.0750, Lc=1.0710
Calculate Vu: 1.0780−1.0700=0.0080 (80 pips)
Calculate qv: 0.25×0.0080=0.0020 (20 pips)
Calculate EQ: (1.0750+1.0710)/2=1.0730
Calculate R3: Lc+Vu=1.0710+0.0080=1.0790
Calculate S3: Hc−Vu=1.0750−0.0080=1.0670
Calculate R6: Lc+(2×Vu)=1.0710+0.0160=1.0870
Calculate S6: Hc−(2×Vu)=1.0750−0.0160=1.0590
3. The Temporal Dimension: Chronos Cycles
Chronos Cycles provides the temporal structure of RSA, mapping the typical four-stage "life cycle" of a trading
session.
3.1. The Hierarchy of Time: The Nested Containment Rule
RSA mandates that all analysis begins with a clear understanding of the market's temporal hierarchy. Time is
not a flat, linear continuum; it is a nested fractal where smaller units are contained within larger ones. This
relationship is governed by the Nested Containment Rule: just as Russian dolls fit one inside another, the price
action of a smaller timeframe is contained within, and must respect, the RRA structure of the larger timeframe.
This hierarchical structure is built directly from the Axiom of Binary Division:
a) A 4-Yearly period contains a 1st Half (Years 1-2) and a 2nd Half (Years 3-4).
b) A Yearly period contains a 1st Half (Semester 1 / Q1-Q2) and a 2nd Half (Semester 2 / Q3-Q4).
c) A Quarterly period contains three months, where Month 1 and the first half of Month 2 form the
1st Half, and the rest form the 2nd Half.
d) A Monthly period contains four weeks, creating a 1st Half (Weeks 1-2) and a 2nd Half (Weeks
3-4).
e) A Weekly period contains five days, where Monday, Tuesday, and the first half of Wednesday form
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the 1st Half.
This creates a pyramid of influence, where volatility decreases as the timeframe increases, but structural
significance grows:
a) Macro-Structure (Low Volatility, High Significance): Yearly, Semester, Quarterly, Monthly.
Defines the primary, secular trend and the overarching market regime. The RRA levels on these
timeframes act as powerful gravitational fields.
b) Meso-Structure (Moderate Volatility, Tactical Significance): Weekly, Daily. Defines the tactical
thesis and operational timeframe. The weekly range sets the battlefield, while the daily chart reveals
the specific battles for key RRA levels within that weekly context.
c) Micro-Structure (High Volatility, Executional Significance): 4-Hour, 1-Hour, etc. Used for precise
execution. This is where the four phases of the Chronos Cycle become most apparent as price
interacts with the daily RRA structure.
The analytical process is a disciplined, top-down workflow designed to align trades with this nested structure:
a) Establish Macro Bias: Begin analysis on the Macro-Structure (Monthly/Weekly) to determine the
primary directional "story" and identify the major RRA levels that are currently in play.
b) Define Tactical Objectives: Move to the Meso-Structure (Daily) to see how price is positioned
within the larger RRA zones and define tactical objectives for the current week or day.
c) Identify High-Probability Setups: Zoom into the Micro-Structure (4-Hour/1-Hour) to find trade
locations. A high-probability setup occurs when a Chronos Cycle phase on this timeframe aligns
with a confluence of RRA levels from multiple timeframes (e.g., a Daily R3 aligning with a Weekly
S1).
3.2. The Four Phases of a Session
a) Early Phase (0–25%): Discovery. Uncertainty, probing action, and the establishment of the
session's crucial high or low anchors (Hc or Lc). This phase often involves an engineered "stop
hunt" to establish a firm structural point.
b) Mid Phase (25–50%): Development. The initial trend develops with more confidence, rotating
away from the established anchor and making a decisive move through the Equilibrium (EQ).
c) Late Phase (50–75%): Acceleration. The primary trend accelerates with broad market
participation. This is the "momentum" phase where price will often make its most significant
directional move for the session, targeting the Neutral Zone (R3/S3) and beyond.
d) Final Phase (75–100%): Resolution. Energy wanes as the move becomes over-extended.
Exhaustion occurs near a key expansion level (R4-R8 or S4-S8), and a reversion back toward EQ
becomes the most probable path as early participants take profits.
4. The Synthesis: Price-Time Relativity
The predictive power of RSA emerges at the intersection of RRA and Chronos Cycles. A high-probability
event occurs when a significant spatial level is met within a critical time window. This confluence of where and
when, or resonance, is the basis for all strategic decision-making.
Archetypal Setups:
a) The Spring-Coil: Price remains tightly range-bound between the R1 and S1 levels throughout the
Early and Mid Phases. This failure to expand indicates a significant buildup of compressive energy,
predicting a volatile, expansive breakout during the Late Phase.
b) The Momentum Thrust: After establishing an anchor in the Early Phase, price accelerates
decisively through the R3/S3 level early in the Late Phase. This action confirms strong trend
continuation and suggests that market participants are targeting higher expansion levels (R4, R5)
with confidence.
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c) The Climactic Reversal: Price tags a major expansion level (e.g., R6) during the Final Phase of the
session. This represents a climactic, often exhaustive, move. It is a classic high-probability signal for
a stall and a reversion trade back toward EQ as late participants are trapped and early participants
take profits.
Part II: Theoretical & Empirical Underpinnings
5. Theoretical Foundations
The RSA framework, while practically applied, is deeply rooted in several scientific and mathematical
disciplines that study complex, dynamic systems.
a) Parallels with Quantum Mechanics: The concept of a 25% volatility quantum (qv) draws a parallel
to the quantization of energy in physics. Just as energy in an atom exists in discrete levels rather
than a continuous spectrum, RSA posits that market volatility expresses itself in discrete,
probabilistic packets. The 25% quantum is not arbitrary but represents the most fundamental,
observable "state change" in volatility expansion, analogous to a physical constant within the
market's own ecosystem. Price does not move smoothly; it "jumps" between these quantized
volatility states.
b) Information Theory Basis: The framework's reliance on T-1 data (the previous session's range) is a
direct application of information theory principles. It assumes that the most recent data (T-1)
contains the maximum actionable information and the least noise. Older data is subject to decay,
as market conditions, participants, and sentiment change. By intentionally limiting its "memory"
to the most recent complete energy cycle, RSA prioritizes signal over noise, creating a highly
adaptive system that is always relevant to the current market context.
c) Complexity Science Underpinnings: RSA is an example of emergence, a core concept in
complexity science. It demonstrates how a few simple, deterministic rules (the Axiom of Binary
Division, the Asymmetrical Anchor Principle) can cause complex, seemingly unpredictable market
behavior. The framework does not attempt to model every participant's action, but rather models
the simple, underlying geometric and temporal constraints within which this complex behavior
unfolds. The intricate patterns seen on a chart are an emergent property of these foundational
rules.
d) Market Ecology Perspective: RSA treats the market as a natural ecological system, not an artificial,
man-made machine. Its rules are derived from observation of the market's inherent properties—its
tendency toward symmetry, its fractal nature, its reflexive feedback loops. In this view, RRA and
Chronos Cycles are not artificial constructs imposed upon the market; they are an attempt to map
the natural laws that govern the flow and dissipation of energy within this financial ecosystem.
6. Empirical Validation Framework
The claims and efficacy of the RSA framework must be subject to rigorous empirical testing. The following
outlines a proposed validation methodology:
a) Multi-Asset Backtesting: Perform extensive backtests of RSA across a diverse range of asset classes
(FX, indices, commodities, cryptocurrencies) and timeframes to validate its asset-agnostic claim.
The testing protocol should analyze reactions at key RRA levels under various Chronos Cycle
phases.
b) Statistical Significance Testing:
1. Hit Rate Analysis: Quantify the frequency with which price respects (i.e., reacts at or
reverses from) specific RRA levels (e.g., R3, S3, R6, S6). Market regime (trending,
ranging, high/low volatility) should segment this analysis.
2. Nested Containment Validation: Statistically measure the degree to which price action is
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contained within higher-timeframe RRA levels. For instance, calculate the percentage of
daily price ranges that remain fully within the bounds of the established Weekly R1 and
S1 levels.
3. P-Value Calculation: Use appropriate statistical tests (e.g., Chi-squared) to determine if
the observed hit rates are statistically significant or merely the result of random chance.
c) Comparative Performance Analysis: Quantify the "edge" provided by RSA by comparing its
performance against standard technical analysis tools. For example, compare the predictive
accuracy of a reversal signal at an RRA level versus a signal at a traditional R3 pivot point or a
Fibonacci extension level. This should be measured in terms of both win rate and risk-to-reward
ratio.
Part III: Advanced Applications & Future Scope
7. Advanced Applications in Practice
Beyond simple analysis, the RSA framework provides a robust foundation for sophisticated trading and
portfolio management strategies.
a) Portfolio Construction & Asset Allocation: RSA can be used to assess the structural "health" and
volatility phase of multiple assets simultaneously. An asset approaching a major higher-timeframe
resistance level (e.g., Yearly R3) might be flagged for potential reduction in a portfolio, while an
asset coiling in a multi-week Spring-Coil pattern might be a candidate for increased allocation.
b) Risk Management Integration: Position sizing can be dynamically adjusted based on the RSA
structure. A trade taken at a high-conviction "Resonance" point (where multiple timeframe levels
align) might justify a larger position size. Conversely, a counter-trend trade taken at a Final Phase
exhaustion level might warrant a smaller size due to its inherently higher risk. Stop-loss placement
can also be guided by the logical structure of the next-closest RRA level.
c) Algorithm Development: The deterministic rules of RSA lend themselves well to algorithmic
trading. An algorithm could be designed to:
1. Scan the market for specific archetypal setups (e.g., Spring-Coil).
2. Execute trades based on the confluence of RRA levels and Chronos Cycle phases (e.g.,
"sell at R4 if in Final Phase of 4H cycle").
3. Automate risk management based on the distance to the next structural RRA level.
8. Limitations, Edge Cases, and Future Development
No framework is infallible. Acknowledging its limitations is crucial for effective application.
a) Known Edge Cases:
1. Extreme Volatility (Black Swans): During unforeseen, high-impact news events, historical
volatility (T-1) becomes a poor predictor of current potential, and RRA levels may be
breached without reaction.
2. Low Liquidity Conditions: In illiquid markets or during holiday periods, price action
can be erratic and may not respect the symmetrical expansion principles as cleanly.
3. Significant Gap Openings: A large price gap at the start of a session can immediately
invalidate the previous session's volatility unit (Vu), requiring the analyst to wait for a
new, stable range to form before applying the RRA model.
b) Future Research & Framework Evolution:
1. Proof of Optimality: Mathematical or empirical proof for why the 25% quantum is
optimal compared to other values (e.g., 20% or 30%) by analyzing reaction quality and
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frequency.
2. Error Bounds & Convergence: Define the statistical error bounds for level projections
and analyze the convergence properties of the recursive binary division under different
market volatility regimes.
3. Resonance Theory: Formalize the study of level confluence, potentially creating a
"Resonance Score" to quantify the strength of multi-timeframe alignments.
4. Energy Dissipation Models: Develop models for momentum decay patterns as price
approaches or departs from key RRA levels.
5. Volatility Phase Transitions: Develop methods using RSA to detect and predict shifts in
market volatility regimes (e.g., a transition from a Contraction Zone market to an
Expansion Zone market).
6. Impact of Modern Market Structure: Research how the proliferation of algorithmic and
high-frequency trading might affect the behavioral patterns that RSA is designed to
model, and adapt the framework accordingly.
9. Conclusion
Reflexive Symmetrical Architecture provides a new paradigm for market analysis. By returning to the first
principle of binary division and applying it with unwavering consistency across both price (RRA) and time
(Chronos Cycles), it offers a deeply intuitive, logical, and powerful method for mapping the emergent
structures of the market. It is an asset-agnostic framework, universally applicable for reading the natural,
rhythmic breathing of any liquid market, providing the analyst with a definitive edge in understanding market
behavior.
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Tools and Articles by the Author
[20] Coto, Adiyat. “Multi-Timeframe Analysis on Stocks and Currencies Market.” Medium, 2023.
https://medium.com/@coto.adiyat/multi-timeframe-analysis-on-stocks-and-currencies-market-532d99e3eac5
[21] Coto, Adiyat. “Auto Residual Range Calculator for TradingView.” Medium, 2023.
https://medium.com/@coto.adiyat/auto-residual-range-calculator-for-tradingview-ce8bfdbd5ad2
[22] Coto, Adiyat. “The Multi-Timeframe Bias Analyzer.” Medium, 2025.
https://medium.com/@coto.adiyat/the-multi-timeframe-bias-analyzer-8d5916d940a3
