Pattern analysis is a popular approach to trading and one that many people consider a necessity for their trading strategies. Pattern analysis is the study of historic chart patterns and indicators—based mainly on price and volume—in order to help traders better predict future trends in the market. Pattern analysis can be made up of many factors, it can rely on analyzing graphs, chart patterns, seasonality and more. But trying to determine a market’s direction by studying patterns created by the price movements of instruments in futures trading can be challenging.
Learning how to properly perform pattern analysis requires trial and error which in the world of trading can result in high risk. Afterall, pattern analysis isn’t a perfect science and two people looking at the same charts could come up with different predictions for the market’s direction. Because of this, performing deep pattern analysis is a time-consuming endeavor. The problem is that trading in and of itself is already time-consuming and requires traders to spend multiple hours in front of their computer screens. Nevertheless, pattern analysis can be very beneficial for trading success.
So how can you have the benefits of pattern analysis without actually having to do it yourself? Through appointment-based trading. Appointment-based trading offers a time-based approach to trading that requires absolutely no deep technical analysis. With our JOBB software—an add-on to NinjaTrader®—all you have to worry about is the pattern of the reaction to the appointment. The result is a straightforward, easy to grasp approach with no need for analysis of patterns.