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The pattern is your friend

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Category: Futures Trading

Brokers like this expression so much they've invented another one that means the same factor : "The pattern is your friend". Why are brokers so keen on mouthing these two aphorisms? Because...

1  It makes them sound smart.

2  They like easy rhymes as a result of they have low IQ's.

three  It encourages you to trade extra steadily, as a result of it requires you to go both long and quick, as the market mood changes. This is good for them, but unhealthy for you since you simply eat up your capital in commissions.

Think about it : what precisely is the "move" or the "trend"? The reality is it's an ever-altering ebb and flow of sentiment that, like the sea, can change direction at any time.

Extra importantly : the graph-line on a 5-minute chart may well be apparently heading upwards while the same market on a 60-minute chart is heading downwards, after which again on a each day chart it's heading upwards, however hey! - have a look at that sturdy down-trend on the month-to-month chart...
U.S. Government Required Disclaimer - Commodity Futures Trading Commission

Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or Tradewins.