Do you see the pattern?

Good Morning, Traders!

I hope you had a great weekend! As we prepare for another week of trading, I wanted to take a moment and share some of my insights on how to recognize market trading patterns.

Being able to spot specific market patterns is crucial to knowing when to buy and/or sell a particular market. But how do we go about figuring out what the market is doing? 

We rely on our timeframe charts to give us the fundamental data we need to determine the patterns that the futures markets are following. Then we can apply our tools such as trendlines to zero in on opportunities to make money in those markets!

Let’s take a look at how I determine market patterns so you can see for yourself. And be sure to read more trading tips here!

Finding the Direction

So how do we find the direction of a market? We simply apply a trendline and follow the lowest price to wherever it leads us. You can see how it works here in this video I made.

Once we have the trendline established, we can then see the overall direction of the market. We used the monthly timeframe to determine that direction. The daily timeframe gives us our high/low price, and the hourly is what we use to figure out when to execute our buy-in strategy!

Weekly Prep

How to Enter the Market on Counter Trend Line Breaks

Everything You Need To Know About Market Candlesticks

Trading Longer Time Frames vs Shorter Time Frames Tutorial

Short-term vs. Long-Term Analysis

When we determine the direction of a market, we’re trying to figure out which way the market will go over the next 1-3 months. But that doesn’t mean short-term analysis is any less important.

In fact, the short-term is where most of the action is. Our daily and hourly timeframes will become the most familiar to you as you trade more often. Without those charts, we wouldn’t be able to figure out when we should buy or sell!

The long-term helps us find markets that are ready to trade while the short-term reveals when and how we should trade those markets.

A person drawing on a chalkboard

The Bottom Line

Figuring out the trading patterns of a futures market is one of the most important things we can do as traders. It allows us to find markets that are ready to trade, making sure we increase our chances of making money. And by looking at both the long-term and short-term directions of a market, we get a clear picture of how we should implement our trading strategy.

With this information, you’re ready to start plotting a course to trading success! But don’t do it alone. I’m here to offer my knowledge and experience you help you get there!

Keep On Trading,

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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