Although many academics argue that price movements are completely random and unpredictable, technically-oriented traders heartily dispute this thesis. They believe that price graphs represent the cumulative opinions of millions of traders and, like many products of human activity, possess an institutional memory that can be analyzed and traded. The fakeout double top/double bottom setup is one such example of this premise that you may employ profitably in forex trading.
Source: http://www.investopedia.com/articles/forex/05/PriceMemory.asp
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