Sometimes I try to take a plunge into charts of 2-3 years prescription to find some patterns of price action (particularly behavior of crowd during significiant events) and I found veri ineresting piece of price action which always present in such moment :
Every spike and abrupt drawdown has so called “traps” - when price is trying to retrace, going up or down for some pips trying to support price splashes, but then it gives up. This pecuilarity was found in 90% of cases and I think serves for evidence of that fundamental analysis work…
So are there any patterns you know which can happen in particular events (you can cite examples from technical point of view as well)
Yeah I had occasions to see price traps during high volatilty. You can can also see there trend momentum - time of reformation of bullish and bearish powers. Despite this pattern works almost every time it is different to predict when it will happen in concrete time…
Using chart history is a good opportunity to predict markets in future. Looking for patterns, identifying and classifying them may help you to notice and recognize their repeating in current trading.
I also use chart history sometimes it help me to indentify some strong and frequently repeaded patters (except waves of course). There is some special tools and services that allow to extract history for specified period of time and work on it. But I use my basic Hotforex history chart tool
