Rising popularity of chart pattern trading in forex market
The forex market is a huge market and every single day the number of retail traders in the online trading community is increasing at an exponential rate. However, the success rate in the forex trading industry is not great. Statistics suggest that out 100 traders only 5 of them are making money consistently in the forex market and rest of them are struggling hard or losing money. Those who are making money are the smart traders who have very clear understanding of the forex market. If you trade the live assets for a long period of time then you will notice that most of the large movements occur during the event of the high impact news release. Some of the traders often ask how to catch these large moves? The answer is pretty simple. All you need to do is to follow chart pattern trading technique in the market.
Head and shoulder chart pattern
The head and shoulder chart pattern is often known as the reversal chart pattern in the forex market. Most of the professional traders use the easyMarkets apps for android to spot these pattern during the event of the high impact news release. Once the market breaks the neckline of this pattern they execute their short orders in them market. However, some of the conservative traders in the forex market often use the price retracement trading strategy to trade the breakout of this pattern. However, if you use the price retracement system then sometimes you won’t be able to ride the new bearish trend in the market but you will definitely save yourself from the false breakout of this pattern.
The triangle chart pattern
Trading chart pattern is very much popular among the professional traders and most of them look for this pattern by using the easyMarkets apps for android. But when you trade the triangle chart pattern in the forex market you must be extremely careful since most of the time the breakout in favors of the long-term prevailing trend. Most of the novice traders in the forex market ignores the long term prevailing trend and fails to make money by trading the triangle chart pattern. So when you trade the triangle chart pattern in the market, make sure that you trading in favor of the long-term prevailing trend since 90 percent of the time the breakout favors the existing trend in the market.
Summary: There are many professional traders in the market making tons of money simply by using the chart pattern trading techniques by using the easyMarkets apps for android. But when you trade the chart pattern in the forex market make sure that you use the higher time frame in the market since it will give you much more accurate and reliable trading signals. If you know the art of price action trading strategy then try to trade the breakout of the chart pattern by using the price action confirmation signal to reduce the risk exposure in the market.