Ok, not really.
But the market participants have memory. And they have somewhat predictable human nature.
And that is what leads to patterns in structure creating familiar outcomes. And the saying that the market doesn’t repeat, it rhymes.
We saw this in a prior article: The Market Rhymes (AKA Don’t Screw Up the Second Opportunity)
I was reminded of this concept again on Monday, as the pre-session price action set up in a manner that felt strangely familiar.
And in a manner that made my initial directional bias quite an easy decision.
Let’s start by going back a little further and looking at the prior day, Friday 5th August. Non-Farm Payroll (NFP) day!
We’ll use the 15 minute chart to fit more data on the image. Loss of “detail” will not matter. It’s the bigger-picture structure that is important.
Ok, so nothing surprising there. NFP does that.
What is interesting though, is what followed.
So we had (a) pre-session trading in the vicinity of the prior day’s high, (b) a strong bearish momentum drive just prior to the session open, and (c) opportunity available LONG, fading the pre-open momentum drive.
And then Monday sets up.
The bearish momentum drive looks small in comparison to the NFP release. But it still had some serious “WOW” factor. Here’s the 1 minute view:
See here for BOF, PB, CPB Setups..
And keep an eye on your market. When a significant event occurs one day and then the market setups up the next day with similar structure… be ready for that same opportunity. The market has memory. Be sure to use yours as well.
PS. If you missed the earlier link, check out this prior article on the same topic. The Market Rhymes (AKA Don’t Screw Up the Second Opportunity)