Natural Law dictates that energy dissipates according to fairly regular intervals. We breath in we breathe out . . . we can only hold our breath for so long. Everything vibrates and all vibration is characterized by the rise and fall of a wave form.
Consider this: Each of the waves pictured above (peak to trough, trough to peak, etc.) are being generated by one action of price. Is it obvious? While you are pondering the answer then consider also that . . . if price just went straight up or straight down relentlessly, then you would have no wave . . . momentum would just be a straight line, not a wave. Now understand that nothing in the natural realm goes straight up or straight down forever.
So the answer to the question is that price will only rise or fall for so long before ‘penetration of the momentum wave‘ occurs. And once that occurs, price momentum in the applicable direction slows or turns . . . because ‘Friction‘ is introduced or increases, depending on how you choose to view it. However you view it . . . the momentum wave slows and eventually turns.
This ‘hidden’ wave amplitude is the key to successful trading because time is a derivative of this slowing and turning process, and is produced relative to this wave. That is to say . . . ‘Time‘ is self-generated by price action alone, and this is not time as we know it. This is not ‘chronos’, the tic tic tic of the clock. This is ‘kairos‘, the fullness of time . . . this is ‘Phi‘ . . . the vibrational playground of ‘Time‘. [. . . Next]
