We discussed the quantity-to-quality transitions - an important factor in the narrative analysis.
Summary:
Some quantitative changes result in qualitative changes. For example, if the energy price goes 10x, suddenly your factory is producing at a loss. This triggers a change in behavior, which is reflected in the market.
In general, each quantitative scale (price, volume, supply, ...) has certain “qualitative transition” points. For example, price has support & resistance levels, which trigger a qualitative change in traders’ behavior when they are reached.
We discussed the quantity-to-quality transitions - an important factor in the narrative analysis.
Summary:
Some quantitative changes result in qualitative changes. For example, if the energy price goes 10x, suddenly your factory is producing at a loss. This triggers a change in behavior, which is reflected in the market.
In general, each quantitative scale (price, volume, supply, ...) has certain “qualitative transition” points. For example, price has support & resistance levels, which trigger a qualitative change in traders’ behavior when they are reached.