When trading Stock Indexes using the Smart Patterns Trading System there is one pattern that helps you to be in better trades; Confluence. Look for your favorite set up patterns in multiple Stock Indexes at the same time. This is especially true when using the Smart Patterns Trading System from IndicatorSmart. For example, by looking for the Basic set up in the Russell, Nasdaq and Emini S&P all at the same time, it lessens the probability of getting caught in the chop and increases the potential of getting caught in a directional move. Let's look at the three charts:
At about 7:18 Pacific time, all three markets lined up with the Type 2 buy set-up. With this occurrence, you trade your chosen market in accordance with the confluence of the markets. You could also use the DOW futures as well in your analysis. With this elegant yet simple technique you will trade less and more likely be trading when the markets are moving. If one market is lagging the others this can be alright and sometimes the lagging market is the best one to trade because it can need to play catch up.
Good Trading to You!