I don’t like to use historical chart patterns as my sole method of research – but they do interest me. Why do the patterns repeat? Human emotion.
Just as we can predict traffic will slow down if there is a car accident ahead, the markets can sometimes be predicted by human greed and fear. In fact this is one of the reasons Elliot Wave Theory works.
Personally, I like to look at quite a bit more data before making an opinion on the market and do not recommend following historical charts blindly.
Courtesy The Chart Store