“History repeat itself …. in a different way but with same meaning in each situation”- Robin. One of the major pillar on which Technical analysis is standing is of continuous feature of market repeating certain types of pattern over and over again.
Question would come to your mind Why does these patterns works ? Mainly because of greed and fear and they have not changed. Lets visit history and see. The biggest fall in recent century we had seen in 1929 the market tanked 11% and in 1987 it had fall of 22.6% which followed similar pattern.
We spotted similar kind of pattern in recent days. Lets see how the market plays out in coming days.
So a question would come in your mind. How do I trade the same. To which there is no single or straight answer. But some of the best traders learn from the past and manage their position.
Vishal Mehta, CMT