Market Cycle

It seems strange that every market can more or less be modeled by one chart. It shouldn’t be possible, but it holds true on most markets.

From The Cheat Sheet

During the Bitcoin hype in 2017, people were talking about how it was “Tulip Mania” or a “Ponzi Scheme”, when it was just doing what every single market has ever done, except on a shorter time frame.

General Electric, Bitcoin, Natural Gas

Why is it so easy to predict mass human behavior again and again over a wide variety of markets with this one chart? If everyone knows that this is what markets usually do, wouldn’t they try to take advantage of that knowledge, causing things to work out differently?

Or is it a self-fulfilling prophecy?

If the decisions of millions of people in markets can be modeled so simply by one chart, can we just as easily model mass human behavior in other aspects?

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