Old Patterns Never Really Leave the ChartThis post is educational and observational in nature based on historical price action. It is not a forecast or a trading recommendation.Charts used are older than 3 months
A: Inverse Head and Shoulders
Point A marks an inverse head and shoulders pattern, a reversal structure formed by a low, a deeper low, and a higher low, typically preceding a shift in momentum to the upside.
B: The Breakout Candle
Point B marks the breakout candle, the candle that confirmed the move above the pattern's neckline.
C: The Fakeout
Point C marks a fakeout that followed, shaking out weaker positions before the real move continued. How far a fakeout can extend before reversing is never known in advance, which is part of what makes this phase difficult to trade in real time.
D: The One Sided Rally
Point D marks a one sided rally, a sustained upward move with limited pullback, following the fakeout.
E: The Old Pattern Trendline as Future Support
Point E highlights a trendline originally formed as part of the earlier pattern structure, which later went on to act as support for future price action.
The Bigger Picture
This chart is a reminder that patterns rarely disappear once they play out. The lines and structures formed during an old pattern often continue to serve as reference points long after that pattern has technically completed, later acting as support or resistance when price revisits the same area. Old structure tends to leave a lasting imprint on the chart, and recognizing that imprint is part of reading price history with depth
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