Look Familiar?

Almost all of our concepts are in some way based on human psychology as well as lessons we've learned about how Wall St. uses long held beliefs about Technical Analysis, Santa Claus rallies, etc. against traders.

As such, just about all of our concepts are fractal in nature, working on a 1 min chart just as well as a monthly chart and working on the IWM just as well as bonds because they are all rooted in the same influence that moves them, human psychology.

So after what we have been forecasting since mid December and what has happened since then, does this price pattern look familiar to you?

 If not, here's a hint...

 Note both have a range, both break below the range in a head fake move or failed move and head higher, using a short squeeze of new shorts who entered on the break below the range.

If it's still not ringing any bells, here's the full chart of the one above and how it resolved thus far...

The IWM daily 6 week range with a Crazy Ivan shakeout and false breakout/head fake move.

The initial chart at the top is one I just mentioned as a Trade SET-UP, let the trade come to you...

Letting the Trade Come to You- NASDAQ Biotechs

Above is the full chart, even though it's on a 30 min chart rather than a daily, it's doing the exact same thing. You probably remember what we expected of the IWM and where the best place to short it was, it's exactly as described in the linked post above from yesterday.

I just thought I'd take the opportunity to show you how predictable Technical traders can be and as such, how predictable Wall St. can be and how you can use that to your advantage in just about any asset and just about any timeframe imaginable. Human psychology remains a constant.