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ruling reason

A term that may or may not have been coined by James Dalton, our mentor in market profile. It means the current ethos, zeitgeist, feel, tone, essentially “what is happening at this moment”. It is that thing that is currently driving the market which can often fly in the face of all analysis and common sense. Can be something as simple as “the market wants to tag this particular psychological level”, or more nuanced like underlying Fed policy or heightened sensitivity to news events.