Most of the time, the market trends operate in an orderly manner. What is the most common level of market movement? This is actually a question that is right in front of us. You can casually pull up a chart and take a look; you will find an issue: regardless of the level of the chart, there will be significant movements at certain times, whether it’s daily, weekly, monthly, or even 4-hour, hourly, or lower time frames.
However, there is a characteristic that the larger the level, the less likely such occurrences are. The higher the level, the lower the complexity of market trends, because large capital operations must be in line with the market fundamentals or, in other words, follow the market expectations driven by the fundamentals. This market expectation will not change drastically from day to day; rather, it presents a periodic structure over a larger time frame. This is what we observe: significant trend reversals happen step by step, needing to follow the emotions of the technical aspects while gradually clarifying the expectations driven by the fundamentals.