Spots,
I thought this may interest you:
by Mel Widner, Ph.D.
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Sir Isaac Newton's first law of motion is one that is familiar to us all, stating that "Every body continues in its state
of rest, or in uniform motion in a straight line, unless compelled to change that state by forces impressed upon it." It is
relevant here, because the same can be said for price behavior. Like physical objects, prices have inertia and
momentum. When at rest, prices often stay at rest, building congestion. When in motion, prices often stay in motion,
along a trend. But like Newton's apple, price momentum changes when market forces are applied. The influencing
event is sometimes known and sometimes not, but in any case cannot be hidden and can be seen in the price. Prices
will often move in one direction for a period, only to stop and flatten or move in the other direction. This occurs
because market forces have changed the momentum. The turning point has significance for future price behavior.
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from May issue of s&c. best regards Mark |
