How to use trading patterns: Useful Tips

Trading with the use of patterns is called Price Action. There are strategies that are based solely on candlestick patterns and graphical analysis without the use of technical indicators. For example, the "Sniper" scalping strategy. But such systems belong to professional ones. If you are a beginner trader - here are some tips:

Use candlestick analysis patterns as a confirmation tool. A strong signal is the formation of a bullish pattern when a resistance level or trend line breaks.

Take your time to open a trade. Not only should the pattern be fully formed, but it should also be confirmed by the next candle.

Be careful when analyzing patterns during news releases. On the one hand, the fundamental factor pushes most to the same action. Therefore, the candlestick pattern will be formed quickly, and clearly and will have a logical confirmation. On the other hand, the volatility at these moments increases, and the formation of a pattern may be false.

You must learn to see the formation of patterns visually. This comes with experience, which is best gained on a demo account.

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