Amazing Way to Master The Art of Chart Pattern Trading

forex market

Chart pattern trading is very much popular among the professional traders. If you want to catch the large moves in the market then it’s highly imperative that you learn the basic chart pattern in the forex market. Most of the novice traders in the forex market try to trade the high impact news release without knowing the market details and thus they incur a heavy loss in the financial industry. If you truly want to become a professional trader and want to catch the large movements in the market then it’s highly imperative that you develop a strong basic in the CFD trading industry prior to real life trading. The success rate in the forex industry is so low compared to other business in the world only due to the lack perfect trading knowledge. In this article, we will learn how to master the art of chart pattern trading in the forex market.

Trade the higher time frame

Most of the novice traders in the financial market tends to trade the lower time frame in the market and thus trade low quality trading signals. But if you look at the professional traders then you will see that every single one of them is executing their orders in the higher time frame. The novice traders simply think that the more they will trade the more money they will make. But when it comes to real life trading it’s totally opposite. So make sure that when you trade the chart pattern in the forex market you look for the reliable pattern in the higher time frame. If you look at the professional traders at Saxo then you will notice that every single one of them is trading the chart pattern in the higher time frame.

Figure: Professional trading environment offered by Saxo

Use price action confirmation signal

Price action trading strategy is very much popular among the forex traders. Most of the traders in the CFD trading community executes their orders in the market by using price action trading signal. So when you spot a possible chart pattern in the forex market make sure that you trade them by using the price action confirmation signal. It’s true that in the very beginning you will have a tough time to trade chart pattern with the help of price action confirmation signal. But once you master the art of price action trading strategy in the market you will find it extremely reliable and profitable.

Fundamental factors

The forex market is an extremely volatile market and most of the time the breakout of the chart pattern occurs during the high impact news release. The novice traders in the CFD trading industry tends to execute their orders in the market based on technical analysis only. But if you truly want to ensure high-quality trade execution in the market then you need to do the fundamental analysis prior to chart pattern trading. In the eyes of trained professional fundamental factors are often considered to be the most powerful price driving catalyst in the forex market. So make sure that you do the fundamental analysis along with the technical analysis to execute a balanced trade by using the chart patterns in the market.

Forex Trading

There are many different ways of trading the financial instrument in the world. If you want to trade the high impact news release and catch the large movements of the market then make sure that you use reliable chart pattern in the market. Though chart pattern trading is very much profitable and reliable but yet you should follow proper risk management factors in every single trade. Last but not the least never trade the market with the money that you can’t afford to lose.