Price neutralizes the market's domi

Price neutralizes the market's dominant concern at that particular moment, facilitating trade by readjusting. In other words, the dominant concern must always be neutralized in the market's closest timeframe in order to facilitate trade. Thus, the market is always making the situation fair to both buyers and sellers operating in the shortest timeframe. For example, if a sudden plethora of buyers enters the market because of a drought, Federal intervention, etc., their reasons for doing so — or, if these are unknown to the market, then the simple fact of their doing so 一 will be the dominant concern that the short timeframe trader focuses on as he bids the market up. The marketplace will continue to neutralize the most recent dominant concern until price gets far enough away from value so that a new concern, usually that of a longer timeframe, becomes dominant. These concerns can be continuous in nature or opposite in nature. This is a balancing process and is a part of the auction market process. In active auction markets, this balancing process is often rapid and volatile. It is important to acknowledge that news and other concerns motivate the short timeframe participants, those who are the vast majority of a given day's, week's, or month's transactions. In other words, in neutralizing the dominant concern, the market as a whole overweights it. Thus, it is often from short timeframe participants focusing on the dominant concern that the market creates what is seen later as a temporary price excess. In other words, while the dominant concern is always discounted or neutralized, it is not always the concern of the long timeframe participants — those who buffer the market from getting too far away from value. Formulating a Market Understanding Understanding market logic will help every participant boost his likelihood of being successful in the market because he will be able to read market activity and receive market-generated information, information that few participants acknowledge or understand. This information specifically relates to how the market is accepting or rejecting higher or lower values over time. Here is the breakthrough upon which all market understanding is based: regardless of the market — organized or not — market activity is readable and can be studied and understood. How does understanding the composition of market activity, the concept of timeframes, volatility, the dominant concern, etc., aid an individual in gaining a market understanding by reading market generated information? The answer is, it does not — not without a framework from which to observe how each element comes together to impact market activity. Such a framework would allow any individual to break down market activity into groupings of participant activity, that is, activity by the various participants as distinguished by their timeframes.