Not necessarily. What is implied by our discussion is that patterns of the PAST will repeat. That is all! A pattern from 50 years ago can repeat without the price going down to that of that time period. So repeating .... The patterns repeat. That is all. A word to the 5-min. chart gang aka ALL OF ET. These patterns, albeit fractals, are best observed on long-term charts. Now I do know that ET considers even 1 day a fckin lifetime - still, just have a good look at monthlies and in the case of Dow Jones go annual chart to see these beautiful patterns in crystal clarity. What the dummies at ET will never understand is that the power comes from the hips - aka monthly timeframe. The MONTHLY is firmly fixed in the HERD collective. Look at Apple (not enough data but still better than realtime) on monthly for an eye-opener.
Well said, Your Honor. But I'll let you in on a secret or 2 and oh its sooo much in line with this thread the only part of the chart that matters is whatever is beyond the hard right edge and this can be discerned in ever increasing exponential terms, but the tools that MUST BE invoked are intense PASSION and YEARNING which in turn drive one to dig tirelessly and wake up every morning and look forward to digging some more in Sybaritic Splendor ad infinitum. There are no shortcuts. The last para rules out, by definition, all HERD members.
I am using charts only for just one reason.. which is " cosiderable" percentage of traders are using it.. This means and i might be wrong that the saw it and make decisions based on what they saw. So, i am trying to take advantage of this simple fact. However, i know quant and institutional do not use charts that much.. They have other representative tools of price and market atction. So who use chart could have an edge and also who do not use charts also could have an edge..
History is simply previous people behavior. So, the question is: Will previous people behavior will be same/similar to their future behavior? I believe yes, but not always.