The use of the Japanese candlestick pattern has become very prominent in the retail trading profession. The majority of the elite traders are using the Japanese candlestick to find reliable trade signals in the market. As a new trader, you might be wondering that functions of the Japanese candlestick patterns are not relevant to your trade execution process. You might be tempted to use the indicators in the market to find the best possible trade signals. Indicators are nothing but helping tools for retail traders. To find reliable trade signals in the market, we strongly recommend that you learn to deal with the major candlestick patterns.
Trading the market with the help of the Japanese candlestick pattern is also known as a price action trading strategy. You might be thinking that mastering a price action trading strategy is a very tough task. Read this article carefully as we are going to give you some amazing tips which will allow you to trade the market based on reliable candlestick patterns.
Develop your basic knowledge
Before you start learning about the price action trading method, you need to focus on your basic knowledge. Without having a strong understanding of the market dynamics, you will never know what it takes to become a professional trader. You should have the basic skills to deal with the technical and the fundamental details of the market. Try to analyze the price movement of the major currency pairs in the demo trading account and get yourself comfortable. Once you have the confidence to trade the market, you may start learning about candlestick patterns.
Get a professional demo account
Being a new price action trader, you should use a professional demo trading account. Without having access to a professional demo trading account, you will never learn the proper way to analyze the candlestick patterns. To get more info about the premium demo trading account, you may visit the official website of Saxo. Try to understand the different formations of the candlestick in different time frames. Give priority to the higher time frame candlestick patterns as they are more reliable and offer better trading opportunities.
Learning about the single candlestick pattern
Never start learning things in a complex way. You should learn about the single candlestick patterns and get used to them. Once you become good at analyzing the single candlestick patterns, you can move to the complex candlestick patterns. Being a rookie trader, you might be thinking that learning about the single candlestick patterns is a tough task as you have to deal with tons of candlesticks. To ease the learning process, you may focus on the most reliable single candlestick patterns like pin bar and Doji.
Learning about the complex pattern
After gaining decent knowledge about the single candlestick patterns, you need to move to the complex candlestick patterns. Learn about the bullish morning star, engulfing, bearish morning star patterns at the initial stage. Once you become good at that, you should be able to trade the major reversals with a high level of precision. However, reversal trading should not be your main concern. It would be wise to focus on trend trading methods from the starting of your career. By doing so, you can reduce the risk factors to a great extent.
Timing your trade
To secure consistent profit, you need to time your trade properly. The majority of the rookie traders don’t give any importance to their trade timing approach. They randomly execute their trades and lose money. On the contrary, professional traders look for the best opportunity by analyzing the economic news calendar. Once you start focusing on the trade timing issue, you can fix many vulnerabilities in your trading approach. In fact, you will become good at trading within a short time. So, work on your trade timing issue and trade at the important support and resistance level. more Info