In the world of trading, many wonder: can a price rise endlessly? Or fall without limits? To answer this, we need to combine chart reading, technical signals, and an understanding of the economic and psychological nature of markets.

1. Charts and Signals: Tools for Understanding, Not Miracles

A chart is a visual representation of price movements over time, and technical indicators (like RSI, MACD, and support/resistance lines) are lenses through which we observe market dynamics.

Natural Limits: No indicator can guarantee infinite upward or downward movement. Signals provide potential zones of action, but they do not create the impossible.

Probabilities, Not Certainty: Technical analysis relies on historical data. It is a tool to estimate market direction, not an absolute prediction.

2. Forces Defining Price Peaks and Troughs

Prices do not move randomly—they are shaped by multiple interconnected factors:

Economic Fundamentals: Supply and demand, liquidity, profits, and monetary policies set ceilings and floors for prices.

Market Psychology: Investor emotions, ranging from greed to fear, create psychological support and resistance levels.

Technical Signals: Indicators highlight overbought/oversold areas and potential reversal zones, like Fibonacci levels or extreme RSI readings.

3. Infinity: A Theoretical, Not Practical Concept

Markets may experience unprecedented bubbles, but nothing rises endlessly, because:

Balance Between Buyers and Sellers: Every upward move needs buyers, every downward move needs sellers. When their numbers dwindle, trends halt.

Impact of Major Events: Economic news, government policies, and central banks influence speed and direction, placing natural limits on market movements.

4. Scientific and Practical Takeaways

Charts and signals are tools to understand market probabilities, not guarantees.

Markets tend to move within natural boundaries set by economic and psychological forces.

Deep chart reading transforms random guessing into informed, enlightened trading decisions.

Message:

“A chart is not your path to infinity, but your map to understanding the market. Limits are not constraints—they are points of strength guiding smart, forward-thinking decisions.”

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