I’ve attached a comparison chart of the 1929 Dow Jones Index along with a current chart of gold. We are now in the age of high frequency computer generating and some might think the markets are completely different now. These charts show bubbles then and bubbles now with visible similarities of patterns. Even though the intraday trading volume is way different the plotting of human emotions on the daily scale remain the same.
This type of action can be spotted in all time frames being plotted on graphs so if you are an investor in a stock and it look like it’s going to the moon and then sells off you can know it just didn’t happen to you. There isn’t any predictive value on the charts posted just a lesson in market history.
If you are new to investing/trading this lesson’s focus was meant to be on the fact that markets go UP,DOWN,and sometimes SIDEWAYS so plan accordingly.