Chart Patterns & Tools

As in nature, where recurring mathematical patterns are often seen, like the golden ratio based on the Fibonacci Sequence, which can be mapped to the pine cone, sunflower, seashell, and myriad other organisms, so, too, exist there in markets certain repeating patterns, though they’re at least as imperfect as those representations of mathematics seen in nature.

As in nature, where recurring mathematical patterns are often seen, like the golden ratio based on the Fibonacci Sequence, which can be mapped to the pine cone, sunflower, seashell, and myriad other organisms, so, too, exist there in markets certain repeating patterns, though they’re at least as imperfect as those representations of mathematics seen in nature.

Because of the existence of such patterns in the markets, we’re able to predict with some degree of certainty that such patterns will occur again in the future. After all, we humans are indeed creatures of habit, and our activities leave behind characteristic markings not unlike those undulations left in the sand by the waters of the seas that once washed over them.

Additionally, because such patterns exist, and traders are aware of and anticipate their formation, their trading behaviour also helps to reinforce such patterns, like a self-fulfilling prophecy. Read on to see how this plays out.