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Market patterns repeat, déjà vu is already seen again!

Market Patterns Repeat

Market charts track patterns that repeat time and again.

Market Patterns Repeat

Market patterns repeat for investors. Charts tracking stock prices show trading patterns that repeat. Repeating patterns can show the mind of the market. Both human groupthink as well as both the wisdom and madness of crowds are repeatedly displayed. Astute investors can use the knowledge and patterns to make money.

Nothing new happens in the patterns of stock market trading or stock speculation. Market patterns repeat for investors.  The patterns have been known for centuries. They serve as windows into the mind of the market. Stock charts track the patterns.

In those patterns we can see human groupthink as well as both the wisdom and madness of crowds. Understanding the patterns provide knowledgeable investors with profit making opportunities.

In stock markets as well as the work of any profession, a daily commute or during a sports contest, movement patterns repeat.

The common element of human emotion drives that behavior. Human nature and behavior time and again repeat the same patterns.

Market patterns repeat for investors and emotions drive it!

Emotions are at the core human nature and behavior. Emotions can always get in the way of human intelligence. We can regularly see this in the displays of panic buying and panic selling in all stock markets.

We can use this knowledge both to make money and to avoid loss.

No one wants to admit to a panic sale that cost money or an overly anxious buy that resulted in paying too much. Daily market action consistently displays such behavior.

Some patterns such as tides of oceans are known and predictable. When beach combing locally at low tide I know the next tide will arrive in about 6 hours and 10 minutes.

Those 6 plus hours are the typical period between tides around the world. In the markets the pattern and rhythm is not nearly as predictable or exact as pattern followed by the Moon which causes tides.

Emotions tied to greed, fear, ignorance and hope powerfully drive much market action. Those forces apply to all. That includes newcomers and veteran traders. Human emotions show in the patterns displayed on stock market charts.

Accept it, learn it and profit, market patterns repeat for investors 

Market patterns repeat for investors. By learning the patterns of stock market charts you access useful data. That can give you insight. That advantage can let you successfully and substantially add to your pile of coins.

Market patterns repeat for investors

Investors can learn and use knowledge of repeating patterns to make money.

The patterns repeat again and again. But, of course, there is always a but. The big but is that exact pattern repetition rarely occurs.

Chart patterns can inform. However, be careful. Getting too fine in analysis or expectation can produce bad or simply grossly inaccurate data.

Number crunching can produce junk. Especially when the numbers are thin or trying to extract data where none exists. That can lead to expensive trading mistakes.

And that can also be a major rub. Especially if aggressive action gets taken based on “knowing” what comes next.

Like the player in any sport caught well out of a normal position. If the opponent gets beat by the bold move, you can be a hero when your prediction is correct. Or the foolish booed goat should the opponent take advantage and turn the tables. You took a chance and lost!

When investing, aggressively anticipating a market or stock move gets very expensive when you are wrong. Probability or possibility is not certain. Like weather forecasting, knowing, studying and analysing provides valuable information. But not certainty.

We know and accept that human nature does not change. But trading patterns do not exactly repeat. They vary. Especially through nuanced pattern changes that are constantly part of the daily trading mix.

If patterns repeated exactly and precisely the army of programmers that have so far tried, would have mapped human behavior. Coders have pounded out millions of algorithms but so far have not nailed it.

All our variable responses and constantly changing influences that impact behavior have not been reduced to code. Someday perhaps, but I am not holding my breath just yet.

At times the variations in stock market charts are slight. Other times they are substantially different. Still the basic patterns do recur again and again. There is both opportunity and risk there.

So exercise caution. Using the tools can produce information. That points to probability or possibility. That can benefit you. Just know this is not a prediction. Far too many newcomers discover the holy grail of chart analysis only to suffer devastating losses.

Charts and patterns can not build a portfolio anymore than the best set of tools can build a house. With effort and time the chart reading skill grows. Apply with caution.

Regard charts as tools, nothing more. Learning to use them gives you an advantage and information. They do not give the absolute answer. They do not predict the future.

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Have a prosperous day!

Bryan

White Top Investor
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