Predicting which way the markets will move is the ultimate test for any trader.
Many traders believe that the markets are random and that there are no discernable trends or patterns to market movement.
However when you start to analyse market data whether it be intra-day data or end of day data this random idea starts to fall by the way side.
In fact some trends are well known already like sell in May and go away.
One trend that is very common, is that the Indices markets like the Dow Jones, S&P500, FTSE100 and DAX tends to rise from Mid October to the end of the year.
If you don't believe this then simply take a look at a chart and you will see that most years there is a rise over this period which is on many occasions significant.
Other similar patterns and trends are prevalent in all markets including indices, Forex, Commodities and Shares / Stocks to a greater or lesser degree.
Trends and patterns can be found on a daily, weekly, monthly and even quarterly basis giving any trader a noticeable edge in their trading.
For example if you knew that one particular day in the month had risen on eight occasions out of 9 would you be selling on that day in 2011? Again if you knew that the market had risen for the last 8 years in December would you be selling a December Month contract? The question many people will ask at this stage is how to take advantage of these trends.
In other words which products make the most sense to use.
Well we would suggest taking a look at Financial Fixed Odds and Binary trading which both offer excellent low risk returns.
Financial Fixed Odds will allow you to trade a weekly, monthly or quarterly contract and Binary bets / Binary options will allow to trade on a intra day, daily and weekly basis.
The added attraction of both of these products is that neither require the placement of stops.
Any potential loss is fully disclosed before you commit to any trade which helps dramatically with money management.
If this type of analysis appeals to you for your trading then we would suggest visiting Elm Trader who specialise in providing this type of trends and pattern analysis.
The Power Trader system report that Elm Trader provides shows the strongest daily, weekly, monthly and quarterly trends for rising and falling markets.
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