There
are many methods of trading the financial instrument in the world. If you are
relatively new in forex trading then you might be using indicator based trading
strategy. But if you trade the financial instrument with indicator based
trading strategy than chances are very high that you won’t understand the real
price movement of the market. If you look at the professional traders than you
will see that most of them trade the raw price in the market and different
chart pattern. Chart pattern trading is extremely profitable and reliable in
the forex market since it allows the traders to catch the large movement of the
market. There are many different ways of trading the chart pattern in the
financial world. In this article, we will discuss how to trade the highly
reliable chart pattern like the pro traders.
Explore your trading platform:
Most of the novice traders in the financial world doesn’t even know that their
trading platform provides unique sets of tools to do the perfect technical
analysis in the market.
Figure: Professional platform offered by reputed
brokers
So
as a trader you should learn about the different trading tools and indicators
in your platform since it will help you to analyze the market in a much more
better way. All the professional traders in the financial sectors put a great
deal of emphasis in exploring the trading environment since its one of the key
method of enhancing your technical skills in the market. As a trader, you should
know about the different functionality and different types of charts viewing
options since it will allow finding the best possible chart pattern in the
market.
Reliable chart pattern:
There three highly reliable chart pattern in the forex market which the professional
trader’s trade. The first chart pattern is the head and shoulder chart pattern
and its bearish trend reversal signal in the market. The best way to spot this
chart pattern is to use the 4 hour and daily time frame in the market. The
second most reliable chart pattern in the triangle chart pattern and the best
way to spot this chart pattern is by using the daily time frame in the market.
The third type of chart pattern is the doula bottom and double top chart
pattern and they are usually found at the top and bottom of the trend. But when
you trade the different chart patterns in the market make sure that you are
using the higher time frame in your trading platform.
Use price action confirmation:
Price action trading strategy is considered to be the most profitable trading
strategy in the forex market. The professional traders trade the highly
reliable candlestick pattern at the key support and support and resistance
level by using this system. But this system can also be used in chart pattern
trading. Once you find a possible chart pattern in the market tries to find a
reliable candlestick pattern favoring your trade direction. Let’s make it
clearer. Think that you have spotted a head and shoulder chart pattern in the
forex market. So as a professional trader you should wait patiently for the
breakout of the neckline. So once the neckline is breached in the market then
look for bearish price action confirmation signal in the market to execute your
orders in the market. There is two method of trading the chart pattern the
first one is the aggressive method and the second one is a conservative method.
So if you are relatively new in chart pattern trading then you should follow
the conservative method of chart pattern trading which includes the used price
action confirmation signal.
Summary: Trading the chart
pattern is one of the most profitable ways of catching the large moves in the
market. In this article, we have told you the most reliable chart pattern in
the forex market. If you truly want to master the art of chart pattern trading
than try to spot the chart pattern in the higher time frame and use the price
action confirmation signal to trade this pattern. But before you start trading
the chart pattern make sure that you reduce the risk exposure in the market
since you will be trading against the long-term prevailing trend in the market
No comments:
Write comments