Study Recursive Expectations 📚 Your expectation today depends on what you expect your future expectations to be. [Basically Expectations within Expectations] — E₀[X₁] → your expectation today about next period. — To figure out X₁, you need E₁[X₂] → the expectation you will have next period. — E₁[X₂] may depend on E₂[X₃], and so on E₀[X₁] → depends on → E₁[X₂] → depends on → E₂[X₃] → [The Recursive part, aka stacked expectations] Today’s expectations are built from a chain of future expectations. Though this is mostly used on a Long Term scale to predict Inflation, Exchange Rates, Interest Rates, Policy Expectations, Etc - You can utilize this equation within your Short Term Trading to increase clarity upon inferences where expectations affect prices immediately. Education such as **Recursive Expectations** & **Game Theory Trading Psychology** are just two of the many many things going into my trading and investing book that I am writing. The more you increase your education, the sharper your edge!