History

The idea that "history repeats itself" is another assumption of technical analysis. Technical analysts believe that patterns and trends in the market tend to repeat over time, and that these patterns can be used to make predictions about future price movements. For example, if a security's price has exhibited a particular pattern in the past, technical analysts might believe that this pattern will repeat itself in the future, allowing them to make informed investment decisions. This idea of "history repeating itself" is based on the belief that market participants tend to act in predictable ways and that these actions drive market trends. Technical analysts believe that by identifying and following these repeating patterns, they can gain an advantage in the market.