Chart pattern trading is by far the most effective way to make money in the online trading industry. If you have a look at the novice traders, you will realize that most of them don’t have the skills to deal with the major chart pattern. In general, they take their trades by using the indicators and EAs. But to make regular profit in the ETF trading industry, a trader should learn to trade this market with the major chart pattern. Though it will seem a very tough task today we are going to give you some advanced tips.
Now let’s learn some of the key technique by which the professional traders deals with the major chart pattern in Forex market. If you wish to succeed as a trader, make sure you follow these rules.
Selecting the trading instrument
As a professional chart pattern trader, you should select the major currency pairs only. Without selecting the major currency pair, it will be a very big challenge to overcome the major obstacles at trading. Things might sound silly at the initial stage but once you learn to deal with the major currency pair, you will realize the price movements are much more stable. Moreover, you can take the trades with strong confidence. On the contrary, if you take the trades in the minor currency pairs, you are never going to succeed in the retail trading industry.
Identify the pattern
After selecting the major currency pair, you should focus on the pattern identification process. Many retail traders fail to do the proper market analysis as they don’t have the skills to deal with the critical market dynamics. But if you take a smart step and use a professional trading account, you should have zero trouble in identifying the major patterns. Click here and get a professional trading platform from Saxo so that you can do the advanced market analysis with a high level of precision. Instead of trying to look for the major reversal pattern, you should be looking for the continuation patterns. Once you become good at analyzing the continuation pattern, it will be really easy to make a regular profit.
Identify the major breakout
To identify the breakout properly you have to learn about the price action trading strategy. By using the price action trading method, you should be able to identify the major breakout in the market. For a bullish breakout, you should be looking for a candlestick that has a closing above the resistance level. On the contrary, for a bearish breakout, look for a candlestick that has a closing below the support level. Once you learn to identify these major patterns along with the breakout, taking the trades in the Forex market will be an easy task.
Managing the risk profile
As a chart pattern trader, you should not trade this market with high risk. If you take trades with high risk, you are never going to succeed in the retail trading industry. Many novice traders have blown their trading account due to a lack of knowledge. If you want to make a living out of trading, you should follow a safe protocol and then take the trades with an extreme level of caution. The overall risk factor should never exceed 2% of your account balance. If it does, it will be a big challenge to protect the capital.
Analyze the major news
Most of the breakout takes place right after the major news release. If you become good at trading, you will often forget the importance of the news analysis process. But news analysis is done to find the major breakout with high accuracy. So, learn to evaluate the major news in the market and try to look for reliable trade signals. Once you become good at it, you should be able to make consistent profit by using the major chart pattern trading strategy.