Price action trading: The market cycle

摘要

Markets are created by institutions so that they can quickly buy or sell when they want at a fair price and with a tight spread. The market is always searching for a price that is fair for both sides, and that is why it spends most of the time in trading ranges, which are areas of agreement. Breakouts up and down are brief moves that occur because both the bulls and bears agree that the price is too low in a bull breakout or too high in a bear breakout, and the market needs to move quickly to a new area of agreement.