Trading the major support and resistance level is often considered as tough for rookie traders. The rookie traders often mess things up and fail to find the best possible trade signals as they don’t know the proper way to find the critical levels in the market. If you want to make a living based on trading, we strongly recommend that you learn to trade the major support and resistance level with a high level of precision.
To make the overall CFD trading process easier, we are going to give you some amazing tips which will allow you to trade the important levels with a high level of precision. Make sure you go through this article very carefully as it will change your life.
Chose the daily time frame
While drawing the major support and resistance level, you should be choosing the daily time frame. Failing to find the support and resistance level in the higher time frame usually leads to frustration. If you try to draw the important support and resistance level in the minute time frame, chances are high that you will be taking the trades at the minor support and resistance level. So, to ease the overall process of trading, we are suggesting you focus on the higher time frame. As you do the data analysis in a higher time frame, you will become more confident with your actions, and thus securing the profit will be easier.
Select the major currency pairs
You should start your trading career by trading the major currency pairs. Some people prefer to trade cross currency pairs and they think it is the most effective way to make money in the online trading industry.
But to trade in the cross pair, you should bring significant change to your trading system. To revise your trading strategy, you need a professional demo trading account. Feel free to get it from here. By choosing a professional demo trading account, you can easily ease the overall learning process of trading. Most importantly, you will gain access to the high-end trading platform and can easily take your trades with strong confidence.
Study the candlestick patterns
To trade the major support and resistance level with a high level of precision, you must learn to analyze the major candlestick pattern. Taking the trades based on the candlestick pattern is also known as the price action trading strategy. As you learn about the advanced price action trading method, you will become more skilled with your actions and thus you can earn more money in the retail trading industry. Some of you might increase the risk factor after learning the basics of price action trading strategy. By doing so, you are just pushing your career in the line of fire. No matter which trading method you chose, you should not increase the risk factors.
Learn about the chart patterns
Professional traders often use the major chart pattern to take the trades at the critical support and resistance level. By learning about the important chart patterns, you should be able to scale your trades in a structured way and find much better signals. Never expect that you can win all the trades just because you know about the chart pattern trading method. Always be prepared to accept the losing trades and only then you can trade with a relaxed mind-set. Take your time and learn about the important market details from the scratch. Once you become good at trading, you may focus on the important market details and take the trades with low risk.
No matter how good you are at trading, you should never consider the support and resistance level as an absolute zone. Always be prepared to experience a breach in the important trading zone as it will help you to keep your fund safe. Lastly, keep the risk factors low no matter which trading method you chose.