The Hand-Off or Conflicting Robots
Here is a chart of the Nasdaq100 futures. My understanding is that most tend to think that price moves linearly. This is not surprising given that most of the charting programs available are dominated by the ability to draw perfect lines. Further, the human mind works in a similar way, that is to say, the simplicity of linearity is appealing to the unconscious mind — “the line is moving up, the line will always move up”, “the line is moving down, the line will always move down”. This thinking is a phenomena, in my opinion, given that so much of the natural world around us moves in cycles. It bends.
The market does not move in perfect lines; no, more often than not it moves in repeating series of alternating convex and concave patterns. That is, the market spirals. It moves in three dimensions. So many have a difficult time grasping this concept and I, unfortunately, do not have a succinct way to define it beyond– price moves in spirals, though sometimes it moves in lines.
You either understand the concept and “see” it, or you don’t.
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