Finding Trading Patterns in S&P 500 Futures

Today, I want to 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? 

Well, we rely on our time frame 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…

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. 

Once we have the trendline established, we can then see the overall direction of the market.

Monthly Chart of S&P 500 (ES) Futures — Source: TradingView

We use the monthly time frame to determine that direction. You can see an example of this in the monthly chart of S&P 500 (ES) futures above.

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 one to three 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.

The daily time frame gives us our high/low price…

Daily Chart of S&P 500 (ES) Futures — Source: TradingView

And the hourly is what we use to figure out when to execute our buy-in strategy.

Hourly Chart of S&P 500 (ES) Futures — Source: TradingView

These time frames will become the most familiar to you as you trade more often. Without these charts, we wouldn’t be able to figure out when we should buy or sell!

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

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!

Before I Go…

There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks… 

But my colleague and energy expert Anthony Speciale has a particular focus on the petrol market.

To learn more, check out the important P.S. below…

For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.

I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.

And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!

Keep on trading,

P.S. My colleague and energy expert Anthony Speciale continues to show the way to profits from the petrol patch…

To learn more about his pipeline of profits, click here!

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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