A trader shows how to use a chart pattern to predict price drops. He finds the lowest candle, measures the distance to a trend line, then expects the price to fall that same amount when the pattern repeats.
What this is right here is a basis for all of the charts, and this happens over and over and over. If you find the low on the candle that had the lowest low and you measure from right here to the top of the trend line to right here and you measure the price distance, let's say this is $20, what you will find is the next move down will be this distance. So like this would even continue further down.
