Consolidate Quote by Donald Miller
“What do markets do? They consolidate, they breakout, they extend, they overextend, they back and fill, they consolidate, and repeat the process. That's all you need to know about the markets.”
About This Quote
Markets move through phases of compression, expansion, and reversal, repeating patterns over time.
In simple terms: Markets cycle through consolidation, breakout, extension, overextension, and back.
Key Takeaway
Recognize cycles to anticipate moves.
Themes
finance
trading
cycles
Mood
analytical
pragmatic
Type
educational
strategic
When to use this quote
- stock trading
- forex
- commodity markets
- investment planning
Key Concepts
technical analysis
market dynamics
Questions to Reflect On
- How can you identify the start of a new cycle?
- What signals indicate a market is overextended?
A Different Perspective
Market cycles can be disrupted by unexpected news or policy changes.
![“Once you start moving [market] lower, then you trigger of all sorts of things. You trigger people who have to sell because they're over-levered. So they sell their winners and their losers. They're just trying to raise cash. So, what you then get is spreading malaise throughout the global markets.” quote by Mohamed El-Erian](https://sms4smile.com/quotes/img-quotes/6aa/mohamed-el-erian-19946_cash_once-you-start-moving-market-lower-then_2764402.jpg)
