Aristotle is traditionally credited with the concepts behind the familiar idiom "nature abhors a vacuum."
It's just a way of saying, "when something is moved out of a space, something else will move in," or, "there is no truly empty space."
Some incredible minds have grappled with the ramifications of this concept over the 23 centuries since Aristotle.
To name a few: Galileo, Blaise Pascal, Thomas Hobbes, Robert Boyle, and even calculus co-inventors Sir Isaac Newton and Gottfried Leibniz have all weighed in.
Modern science has answered this question… with a few equivocations.
From a quantum perspective, there is no true empty space – it would still be filled with quantum fields. Nonetheless, there's a good deal of mostly empty space and plenty of partial vacuums.
Just like nature, the markets find a few things abhorrent – most of all the parabola.
A parabola is, at its essence, an exponential function. Galileo in his final, 1638 work, "Discourses on Two New Sciences," proved that the trajectory of a projectile traveling through a non-resisting medium is a parabola.
Like a cannonball or bullet dropping back to the ground, trading patterns that look like parabolas inevitably come back to earth as well.
For investors, the results can be disastrous. But for nimble traders on the right side of the "landing," a parabola can be extremely lucrative…
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.