A complex combination (Sum is bigger than the parts) of underlying fundamentals and market expectations of fundamentals, keep manifesting in trends.
These trends unfold in various time frames.
In each of these time frames, excesses get built as the trends overrun their course...correction or reversion to mean ensues.
In each of these time frames, excesses get built as the trends overrun their course...correction or reversion to mean ensues.
1) This pattern repeats itself again and again.
2) There are patterns playing with larger patterns. This is the multi layered fractal nature of this behaviour. There could be a trend in a higher time frame, but a correction in lower, or vice versa.
2) There are patterns playing with larger patterns. This is the multi layered fractal nature of this behaviour. There could be a trend in a higher time frame, but a correction in lower, or vice versa.
For those who have seen the movie, Inception, this is like a layered structure of a dream inside a dream. A lot of what is happening in a frame can be explained by zooming out and seeing what is happening in the higher frame. 
A successful investor can manoeuvre herself in and out of one frame to outer or inner frame.
3) All investment strategies involve making money by manoeuvring this complex display of aggregate patterns.
3) All investment strategies involve making money by manoeuvring this complex display of aggregate patterns.
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