Dealing with the major chart pattern is a very complex task. Most of the time, the traders get lost and fail to make a profit since they don’t know who to deal with the complex market structure. If you want to make some serious profit, you must learn to trade the major patterns. Chart pattern trading strategy is one of the most effective ways to make a big profit. The new Singaporean traders often place a trade before the release of high impact economic news. Sadly, the lose most of the trades since they don’t have any technical knowledge to trade such news. After reading this article, you will have the ability to trade triangle chart patterns like a pro trader.
What is the triangle chart pattern?
Understanding the triangle chart pattern is fairly easy. You will be looking to spot some triangle pattern in the price chart. Identifying the major patterns in the lower time frame is easy but this is not going to work. Those who are looking to develop their skills just like experienced traders, must learn to trade the chart pattern in the daily time frame. Daily time frame trading might be a hectic process as you will wait to get the best signals. But if you stick to this process, within a few months, you will be able to identify the chart pattern.
Continuation and reversal trading strategy
The triangle pattern can be used to relate with continuation and reversal pattern strategy. If the breakout occurs in favor of the trend, you will be using the continuation pattern. On the contrary, if you trade the market against the major trend, you will be dealing with the reversal pattern. The type of trading strategy which you will greatly depend on the market condition. But always make sure you are trading the chart patterns by using the best Forex trading account. Using the unregulated broker to place your trade is more like a suicide mission. So, chose your broker very carefully so that you have the accurate price feed in the trading platform.
Look for potential price action signal
The best way to trade any breakout is through the use of the price action signal. The price action trading strategy allows the retail traders to make some serious profit. You may have little experience with your trading skills, but once you start trading the triangle breakout with the Japanese candlestick, you will be able to trade in a relaxed way. Let’s say, price breached below the triangle support. So, is it a good idea to place the short orders right after the break? The obvious answer is NO. You need to look for the bearish candlestick pattern to support the sell signal. Once you start to rely on the price action signal, you can dramatically improve your trading skills.
Reduce the risk in each trade
Learning to trade the major chart pattern is an easy task. But if you look at the experienced traders, you will realize the importance of money management. Taking too much risk in each trade is more like dealing in the casino. You never know what will happen next. So always be prepared and get ready to lose trades. Does this mean, we can’t avoid losing trades? Sadly, no traders can avoid losing trades. However, with in-depth knowledge of the price action trading strategy, any retail traders can make significant progress in their careers. So, think twice before you place any trade with high risk.
Assess the sentiment of the market
Trading major breakout requires precise knowledge of sentiment analysis. You have to analyze the consumer sentiment and based on that determine the quality of the breakout. By using the sentiment analysis technique, you can easily protect your trading capital from big losses. So as a chart pattern trader, you must learn to analyze the sentiment of the market.
