Strategy Video: False Patterns Can Lead a Trader to Failed Setups

Talking Points:

• Much of trading and investing is recognizing repeatable patterns - business cycle, economy, techs, etc

• Patterns don't always develop consistently and sometimes the wrong catalyst is afforded importance

• Both technicals and fundamentals are exposed to mistaken analysis and trade setups

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Does crossing a high-profile 'round' figure a technical cue for strong follow through? Should we expect the next durable goods report to generate a strong volatility and trend response from the US Dollar? If we were looking at USDJPY's rally through 110 some months ago or last Thursday's Dollar rally, it would seem that both of these are certain catalysts for their respective markets. Yet, USDJPY has meandered after a brief jaunt above 120. Meanwhile, the durable goods figure was unlikely the catalyst for the Greenback - it was just a bigger 'surprise' than what was truly interesting: CPI. In today's Strategy Videos, we discuss false patterns and improbable market movers that can lead traders down confusing paths.

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