How trends drive themselves: On the feedback mechanism of financial markets
- 2025-12-17
- Posted by: Wmax
- Category: Tutorial
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The deep driving force of price movement in financial markets comes from the internal feedback mechanism of the system. This article analyzes the stabilizing effect of negative feedback and the self-reinforcing mechanism of positive feedback (momentum), and how they lead to bubbles. It is recommended to distinguish healthy trends from bubble trends, take advantage of negative feedback windows, and stay awake and alert.
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