The Great Economic Elasticity: Why the Market “Returns to the Mean”
In the high-speed world of global finance, prices often behave like a stretched rubber band. They may fly to extreme highs during a "bull market" or snap down to terrifying lows during a crash, but eventually, they tend to snap back toward a central average.
Riding the Morning Wave: A Guide to Trading Gaps and Market Open Volatility
The first hour of the trading day is often compared to the start of a wild horse race. For a few frantic minutes, orders that accumulated overnight or over the weekend flood the market, causing price "gaps" and intense volatility.