1. Market Dynamics: Financial markets continuously seek price equilibrium, reflecting the balance between supply and demand. Prices fluctuate towards an equilibrium, signaling shifts based on transactions.
2. Power Imbalance: Market trends indicate demand and supply imbalances, not by the number of participants but by their financial strength and market behavior, shaping the direction of price movements.
3. Psychological Influence: Investor psychology, driven by emotions and expectations, significantly impacts trend sustainability. Positive feedback from observing market movements encourages trend participation.
4. Expectations’ Impact: Price trends mirror market sentiment. Uptrends imply positive investor outlooks and willing investment, while downtrends reflect a desire to sell off, driven by both rational and emotional factors.
5. Trend Utilization in Technical Analysis: For technicians, exploiting observable price trends is paramount, focusing on momentum rather than the fundamental reasons behind market movements.

• Bias Impacts: Slow market adjustments due to conservatism and confirmation biases, emphasizing confirmatory information, delaying price corrections.
• Anchoring Effects: Anchors lead to poor adjustments for new info, causing gradual correction of price trends towards rationality.
• Story and Confidence Bias: Narratives and overconfidence skew market efficiency, necessitating corrections from irrational to rational prices.
• Data Overinterpretation: Misreading small datasets leads to false trend assumptions, causing undue volatility and eventual price adjustments.
• Herding and Cascades: Rational imitation at the individual level results in collective irrationality, hindering accurate information diffusion and causing price deviations until market correction.