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A common phenomenon in the market is that most people only realize the risk has been there all along when the trend actually materializes. When prices start to decline, many will say it's a "normal correction"; if it drops further, they'll interpret it as a "shakeout"; only when the trend truly deteriorates do they realize that the risk was clearly written in the chart all along, but no one was willing to read it carefully at the time.
Trend changes never happen overnight; they gradually become apparent as higher highs stop being made and lower lows continue to shift downward. In wave structures, major adjustments often have early signals, but emotions tend to lag behind the structural signals by half a beat.
The market is never short of signals; what’s lacking is the willingness to believe in those signals. By the time everyone understands them, the trend has often already run a significant portion of its course.
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