Perhaps the most important rule when trading professionally Is that history repeats itself in the markets..
So you may be asking what exactly does this mean?
Well its rather simple; Market moves that happened before happen again!... Over and over. The reason is because markets have memory. When price returns to these levels you see similar reactions.
Why is this information so important?..
It is Important because it allows you to Make better decisions in your trading. If you know price repeats, you can add it into the formula you use to trade any asset. This is because it works in any setting and is relevant in ALL markets. You will notice no matter the chart you are looking at, there is oscillations and consolidations. These are all based on price action from previous events.