Humans are creatures of habit and that is why history will almost always repeat at some time in the future. The same holds true for our financial system as well as the stock market.
I have always been a big “fractal pattern” believer and do a lot of my research for future direction, based off of a similar pattern that has happened in the past. History will mimic, but not repeat exactly for the most part, as will fractal patterns. But they are a great guide to what to expect in the future.
You can look for “fractal patterns” on all time frames, depending on your trading style. But you make the real money when you can spot a “fractal pattern” on a daily or weekly time period that previously made a big move. It actually just happened and pretty much played out exactly as it did in 1998.
I think that is where the “mimic but not repeat exactly” part will come in now. Meaning back in 1998, after we had the huge drop, the SPX (S&P 500 index) ended up making new highs after the low was set. That may still play out or it may not. The pattern was calling for a drop and where the SPX found support, was almost exactly where it found support almost 16 years ago-when it was trading in this pattern.
Whether the SPX follows it exactly or not, remains to be seen as far as making new highs from these levels. There is still one more leg to this pattern that needs to be filled, to get a better idea what is going to take place next. I will show you exactly what is expected of the next leg of the pattern that’s pending as well as the entire pattern — step by step in our free “fractal pattern video.
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