Patterns

"Patterned Response

Price patterns occur in all financial markets pretty much the same way they have since financial market inception. Patterns of price behavior are merely reflections or should we say manifestations of collective group human behavior. To a new recent degree, those patterns even reflect computer program behavior which is a logical offshoot of human behavior. If you stop and think about it, computers and their operation are nothing more than predetermined thoughts within boundaries and guidelines set by humans. Even neural nets, one step into the process of computerized detached thought is still reined in by man.

There is order and repetition, aka constants or "control" in financial markets. Newbies cannot easily see it. Heck, even veterans struggle sometimes to spot what should be the obvious. But in time and over time we learn to see = measure the same things over and over and over again with predictable outcomes. Here's the catch: that predictable outcome is spread across a large number of similar setups averaged together. Take ten, twenty, fifty, one hundred or one thousand similar patterns and apply semi-rigid trade method entry rules with a trade management method giving at least a +2/-1 (if not greater) profit to loss ratio and you are guaranteed success."

Not too many people look at themselves as a whole. A collective. Symbionic lifeforces working together to accomplish a task.  You see ants doing this everyday. If you could ask ants why they work in teams all assigned with different goals, they'd probably wonder what the hell you're talking about, to leave em alone so they could back to what they were doing, which they couldn't explain in the first place.  Another example would be fish in the water unaware they're in water. 

People are different. We're able to look outside the box and see and observe our surroundings before describing them, analyzing them, and interpreting them. If we were simple-minded creatures, we'd never notice the daily routine we go through and the constant repitiveness individuals share. We all experience the same emotions, have the same thoughts, act as individuals, yet as a whole, there is a goal I'm not sure we quite understand or even realize is taking place. A goal similar to what ants accomplish with their homes and multiplication.

Would your male cat be able to tell you why he enjoys sex so much? That's the difference between us and them. People realize can tell you that not only does it feel good, but we do it for procreation, whether intentional or instinct.

A reason I love Fibonacci TA is not only that I enjoy finding patterns in both uptrending and downtrending charts with it, but because I feel that these patterns are manifestations of our collective group behavior. 

People take for granted what used to have to be charted and drawn by hand can now be done by a simple click and drag of the mouse.