Force = Mass × Acceleration

Newton’s Second Law of Motion states that a relationship exits between an object’s mass, its acceleration, and applied force. Specifically, force equals mass times acceleration. Physically, this relates to how much force it requires to move an object a given distance at a given speed. You can apply this law as a premise to understanding the markets. Understanding how much volume (force) is required to move a security (the object) a given distance (price change) at a given speed (acceleration/momentum) can be helpful in security analysis. Richard Wyckoff referred to this principal as the law of effort versus result, which asserts that the effort must be in proportion to the results.

In my first year on the colligate track team, I was designated to run in the 4-by-1 mile relay, where each of the four runners runs a 1-mile leg. I was not a miler. I primarily ran the long-distance events, such as the 5K and 10K. Interestingly, of the four relay members, none of us were milers. I led off with the first leg of the relay, and the race started out fast. I had good speed for a distance runner but was coming off of an injury and had not been training for the shorter distance events. My first lap time was 60 seconds—too fast for my taste because my heart rate was 150, but I was toward the back of the pack and did not want to let my team members down. My next lap time was 61 seconds, and again I was toward the back of the pack. ....