Chart
pattern trading is considered to be the most advanced form of
trading the financial instrument in the world. There are many
traders in the forex market who often trades the live assets by
using the chart patterns only. If you live in Singapore then you
can go for the forex trading account Singapore offered by Saxo
since it has many advanced trading features. Most of the traders in
Singapore are doing a great job in trading the live assets since
they are trading with the most reputed brokers. If you truly want
to choose a trading career in forex then make sure that you learn
the basic of the forex market very precisely. In the eyes of
trained professional chart pattern trading is considered to be the
most advanced form of trading the market. In this article, we will
learn the most common mistakes done in chart pattern
trading.
Head
and shoulder chart pattern: Most of the professional traders highly prefer this chart
pattern since it is one of the most powerful bearish reversal
signal in the market. If you go for forex trading
account Singapore then you will look that most of the traders
are trading the head and shoulder chart pattern to trade the
bearish reversal signal in the market. But most of the novice
traders fail to make a profit from trading the head and shoulder
chart pattern since they trade without price action confirmation
signal. So the very first thing that you need to identify the
bearish price action signal in the market. Most of the novice
traders fail to make money since they trade without any
confirmation signal in the market. So make sure that your trade the
pattern once the confirmation is printed on the chart.
Triangle chart
pattern: Triangle chart
pattern trading also very much popular in forex trading. Starting
from the novice traders ending with the advanced traders all of
them trade the triangle chart pattern in favor of the long-term
prevailing trend in the market. Most of the time the breakout
occurs in favor of the long-term prevailing trend and here the
novice traders made their very first mistake. So when you trade the
triangle chart pattern in the market make sure that you always
trade in favor of the long-term prevailing trend in the market
since this will greatly reduce your risk exposure in the market.
But when you use forex trading account
Singapore make sure that you trade
with proper risk management factors.
Rectangle chart
pattern: There are many
traders in the forex market who loves to trade the rectangle chart
pattern in the market. But most of the novice traders in the forex
market trade the rectangle chart pattern without any price action
confirmation signal. So if you trade without any price action
confirmation signal then chances are very high that you won’t make
any profit in forex trading while trading the chart pattern.
Another thing that you need to make sure is to identify the
long-term prevailing trend in the market. There is a well-known
proverb in the forex market that the trend is your friend. So if
you trend in favor of the long-term prevailing trend then you can
greatly reduce your risk exposure in the market.
Summary:
Chart pattern trading is one of the easiest and
advanced ways of trading the live assets in the market. If you
truly want to master the art of chart pattern trading then make
sure that you use the price action confirmation signal in the
market since it will greatly reduce the risk exposure in the
market.