Which of the following is NOT one of the 7 Principles of Commonality?

In the context of the Principles of Commonality, the correct answer emphasizes that cyclical diversity does not belong to the recognized principles. The Principles of Commonality focus on the relationships among price movements across different markets or assets.

Harmonicity refers to the underlying rhythmic patterns that can emerge in price movements, suggesting that certain market behaviors may repeat over time. Proportionality points to the idea of relationships maintaining certain ratios in their movements, showing how different asset classes can move in relation to one another. Variation is often included in discussions about how price actions can differ and still share common characteristics, highlighting that despite differences, there can be underlying similarities.

Cyclical diversity, while it may seem conceptually related to broader market behaviors, does not align with the core principles that focus on identifying the patterns and relationships across securities. This distinction helps to better understand the foundational concepts essential for analyzing market movements collectively.