Chapter Three

Kiss of the Channel Line

While the title of this chapter may conjure up thoughts of a romantic

interlude while surfing channels, the kiss of the channel line has
nothing to do with us personally. The love of its life is price and
understanding the choreography between the two elements allows us to
exploit the attraction between the two for profit, not love.
There is a lesson to be learned here from a movie entitled "Kiss of the
Spider Woman". Technically, it was a movie about two prisoners and how
one uses a Nazi propaganda movie he once saw about the unlikely love
affair between a French chanteuse caught up in the Resistance and the
chief of German counter-intelligence for occupied France to manipulate
a fellow prisoner into accepting a homosexual relationship that he would
otherwise have viewed as repulsive. In the end he succeeds.
So the movie is really about the process of weaving a web of emotion
around an extreme point ofview in order to manipulate a person to accept
it, even though he would normally be repelled by such an action. The
lesson here is a psychological one, having to do with taking one
relationship and using it to manipulate another. So it is true when it comes
to learning how to trade. We have to take certain aspects of the relationship
between price and channels and weave them together in order to extract a
profit. As in this movie, you are in essence playing off the psychological
extremes of other traders while they are manipulated into accepting what
they would normally be repelled by, taking a loss.

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