Topic: Common mistakes in chart pattern trading in the forex market
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There are many different ways of trading the financial instrument in the world. If you look at the professional traders then you will notice that most of them are trading with their unique trading system but the overall gist and methods of trading the live assets are almost similar. Every single professional trader trade the key support and resistance level in the market. Unlike the professional trader, the novice traders execute their orders in their forex trading account in the lower time frame and thus the fail to make money in online trading. If you trade the smaller time frame in the market then you will have lots of false signals on the market. Chart pattern trading is also very much popular among the professional traders in the financial market since it allows them to catch the large movements in the market. In this article, we will learn the most common mistakes in chart pattern trading.
Lower time frame trading: Most of the novice traders in the financial market fails to achieve success in the financial market since they trade the lower time frame in the market. If you look at the professional traders then you will notice that every single one of them is trading the higher time frame in the market. When you trade the market with chart pattern it’s very obvious that you will find the most reliable chart pattern very often in the lower time frame. But trading the lower time frame will not ensure your profit margin in the market since the quality of the trade will be extremely bad. Unlike the novice traders, the professional traders always execute their trades in the higher time frame by using the chart pattern since it gives them much more accurate signals in the market.
Use of indicators: Indicators are considered to be the helping tools in the market but most of the novice traders in the financial industry often consider it as a prime source of the trading signal and thus they often mess up their trading chart by using too many indicators. But if you look at the professional traders then you will notice that most of them are trading chart pattern and executing trades in their forex trading account without any help of indicators. However, if you want to use the indicators in the market make sure that you use only one or two indicators in your trading chart but consider them as your trade filter tools in the market.
Ignoring the candlestick pattern: If you trade the chart pattern in the forex market then it’s very crucial that you know how to identify the perfect breakout in the market. In order to identify the perfect breakout in the market, you need to make sure that you are trading the market with the help of candlestick pattern. For instance, if you want a bullish breakout confirmation in triangle chart pattern trading then look for bullish candlestick pattern before you execute the trades in your forex trading account. Using the candlestick pattern at the very beginning will be a little bit difficult for you but if you stick to your trading plan then over the period of time you will find that this is one of the easiest ways to trade the chart pattern in the market.