Baseball represents the proper sports analogy (with respect to trends within any market) due to one very important factor - time. Unlike hockey, soccer or football, baseball operates (as does the market) on a fractal basis. While each of the previous analogies (hockey, soccer, and football) limit their play based on a clock, baseball does not. From a fractal standpoint, three strikes make an out, and three outs end one half of an inning.
Just as a trend has an easily identifiable beginning and an end, so too does a baseball game have an easily identifiable beginning and end to an inning. While clearly, one may have no idea how long a particular inning may last (a few minutes, or a few hours), anyone with knowledge of how to play baseball, knows the signs which determine both the start and completion of the inning.
The same holds true with all markets, as they too operate (like baseball) on a fractal basis. Once again, one need not know how long a particular trend may last (a few minutes, a few hours, a few days, or a few weeks). One simply needs to understand the signs for when a particular trend has come to an end. Since all trends overlap, where one trend ends, the next trend begins it turns out.
While all markets operate on the basis of mathematics, they do not do so randomly.
- Spydertrader
