The market is always in 1 of 2 phases: 1. Balance/Consolidation/Sideways Movement 2. Imbalance/Trending/Directional Movement -#AnirudhSethi

This statement is a common market theory which suggests that the market is always in one of two phases: a balanced or consolidation phase, and an imbalanced or trending phase.

During a balanced or consolidation phase, the market moves sideways with minimal volatility and little direction. Prices oscillate within a narrow range, and trading volume is typically low.

During an imbalanced or trending phase, the market moves in a clear direction, with prices trending up or down. Trading volume is usually higher and volatility is typically greater.

This theory suggests that traders should adjust their strategies depending on the current market phase, with different strategies being appropriate for trending or consolidating markets. However, it is important to keep in mind that markets are complex and can be difficult to predict. It’s important to use multiple indicators and not to rely on this theory alone when making trading decisions.

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