Oscillation

The direction of the wave is a product or the result of the motions of the wave oscillation.

The Mechanical Wave example tells of 1 subset wave oscillating creating oscillating force pushing the direction.

The Light Wave example shows the 2 interacting waves RED and BLUE producing the Wave Direction.

The example above are CLASSIC LINEAR symmetrical wave oscillation.

The actual situation of financial markets a simple example will be the LIGHT wave BUT in the state of NON-LINEAR DYNAMIC motion. Meaning each successive motion will need NOT be symmetrical and most highly not identical due to the emotional nature of financial markets. This non symmetrical nature has been wrongly labelled as RANDOM.

When one accepts and understand the non-linear (non-symmetrical) successive wave oscillation, we get NON-LINEAR (non symmetrical and non perfect repetitive wave). That is how human emotion actually behave.

It is the NON-LINEAR state or effect that move the wave into UP - DOWN - SIDEWAY trend direction.  

This sort of behavior will not be accepted and clearly understood by most people. It is for this reason that we have extreme moves due to "panic". Unfortunately we are not taught about how to deal with panic extremes in school when we sit for exams. Nether the academic will be able to explain. It is for this same reason the A grade in Finance will not know how to act when this appears. That is why companies go bust despite having the academically excellent graduates helm the top management positions.

A war is won by how well one understand the war, the opponents, the resources, the nature, the terrain, the preparations.